SEC

brief introduction

The U.S. Securities and Exchange Commission (SEC) is an independent federal agency responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, including the nation’s stock and options exchanges. Established by the Securities Exchange Act of 1934, the SEC’s primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

SEC gov official site: https://www.sec.gov/

Key functions of the SEC include:

1. **Enforcement of Securities Laws**: The SEC investigates and prosecutes violations of securities laws, such as insider trading, accounting fraud, and providing false or misleading information.

2. **Regulation of Securities Markets**: It oversees key participants in the securities markets, including securities exchanges, brokers, dealers, investment advisors, and mutual funds.

3. **Disclosure and Transparency**: The SEC requires public companies to disclose meaningful financial and other information to the public, ensuring transparency and enabling investors to make informed decisions.

4. **Investor Protection**: The SEC works to protect investors from fraudulent and manipulative practices in the market.

5. **Rulemaking**: The SEC develops and implements rules and regulations to govern the securities industry, adapting to new market developments and technologies.

The SEC is composed of five commissioners appointed by the President of the United States, with no more than three commissioners belonging to the same political party. The agency plays a critical role in maintaining investor confidence and the integrity of the U.S. financial markets.