What regulates the issuance and trading of stocks and bonds?

The issuance and trading of stocks and bonds is primarily governed by securities regulation, which encompasses the laws and rules that dictate how these financial instruments can be offered and sold to the public. This regulatory framework, established by agencies such as the Securities and Exchange Commission (SEC) in the United States, aims to protect investors by ensuring transparency, fair dealing, and the proper disclosure of financial information.

Securities regulations require companies to provide detailed disclosures about their financial health, business operations, and risks associated with their securities, enabling investors to make informed decisions. They also regulate market practices to prevent fraud and insider trading, contributing to the integrity of the financial markets.

The other areas mentioned—intellectual property law, business ethics, and environmental law—deal with entirely different aspects of law and regulation and do not focus on the specifics of stock and bond trading. Intellectual property law pertains to the protection of creators' rights over their inventions and creative works. Business ethics involves the moral principles that guide the behavior of businesses, while environmental law regulates the impact businesses have on the environment. None of these directly influences how securities are issued or traded.