The Securities and Exchange Commission (SEC) is a regulatory agency in the United States that oversees the securities market. Its name is spelled with three syllables: /sɪˈkjʊrətiz/ and /ənd/ and /ɪksˈʧeɪndʒ/ and /kəˈmɪʃən/. The first syllable is pronounced "sih" as in "sit," the second syllable is pronounced "khyoor" as in "futurist," and the third syllable is pronounced "kheyndzh" as in "change." The final syllable is pronounced "mih-shun" as in "mission."
The Securities and Exchange Commission (SEC) is a regulatory body created by the United States federal government to protect investors and maintain fair and efficient markets. The SEC is responsible for enforcing federal securities laws and regulating the securities industry, including stock exchanges, brokerage firms, and financial professionals.
The primary objective of the SEC is to promote transparency and stability in the financial markets. It achieves this by overseeing the registration and regulation of securities offerings, ensuring that companies provide accurate and complete information to investors. The SEC also monitors and investigates potential securities fraud, insider trading, and other illegal activities that can harm the integrity of the markets.
Furthermore, the SEC plays a crucial role in enforcing compliance with various disclosure requirements, such as the filing of periodic reports by publicly traded companies, which allows investors to make informed decisions. The commission also regulates investment advisers, ensuring they act in the best interest of their clients.
The SEC has the authority to bring civil enforcement actions against individuals and companies that violate securities laws. It can also impose sanctions, fines, and other penalties to deter misconduct and protect investors. Additionally, the SEC works closely with other regulatory agencies and organizations, both nationally and internationally, to promote cross-border regulatory cooperation and harmonization of securities regulations.