Although the Securities and Exchange Commission has existed as a federal administrative agency for over seventy years (the Commission was created in 1934,) some critics question the need for its continued existence, or alternatively argue for significant deregulation of stock trades. According to critics, there is arguably no need for significant federal regulation of publicly-traded securities, since market conditions dictate legitimacy and honesty in securities transactions; after all, for how long could a corporation exist if it does not strive to ensure the integrity of its stock?

How do you respond to this line of reasoning, that the free market will dictate fair and honest stock trades? In your answer, consider the history and mission of the Securities and Exchange Commission.