Securities And Exchange Commission (Sec)
| The Securities and Exchange Commission (SEC) is an independent federal government regulatory organization tasked with protecting institutions and individuals against market manipulation. The SEC was created in 1934 in the wake of the Great Depression as part of President Franklin Roosevelt’s New Deal. At the time, the stock market had crashed and investors had lost billions of dollars. The SEC was designed to restore confidence in the markets by providing transparency and cracking down on fraud and insider trading. Today, the SEC’s mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” The SEC does this by requiring public companies to disclose their financial information so that investors can make informed decisions. The SEC also regulates the trading of stocks, bonds, and other securities. The SEC is led by five Commissioners, who are appointed by the President and confirmed by the Senate. The Commissioners serve staggered five-year terms, and no more than three Commissioners can belong to the same political party. The SEC is headquartered in Washington, D.C. The SEC has a wide range of enforcement tools at its disposal, including civil and administrative actions. The SEC can bring civil actions against individuals or companies that have violated the securities laws. The SEC can also impose administrative sanctions, such as fines or bans from the securities industry. The SEC is an important part of the U.S. financial system, and its work helps to ensure that the markets are fair and transparent. |
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