The Securities and Exchange Commission (SEC) is an independent regulatory agency of the United States federal government. It was created under the Securities Exchange Act of 1934 to supervise and regulate the securities industry, protect investors, and maintain fair and orderly markets.
The primary mandate of the SEC is to enforce federal securities laws, and it is responsible for ensuring the fair and transparent functioning of the securities markets. It achieves this through a variety of regulatory and oversight activities, including registration of securities firms and brokers, enforcement of anti-fraud laws, regulation of securities offerings, and oversight of stock exchanges and other market participants.
The SEC also plays a key role in promoting disclosure and transparency in the marketplace. It requires public companies to provide accurate and timely information to investors, including financial statements, annual reports, and other disclosures. The Commission also oversees the activities of investment advisers, ensuring they fulfill their fiduciary duty to clients and act in their best interests.
Additionally, the SEC investigates and prosecutes violators of securities laws, bringing enforcement actions against individuals and companies engaged in fraudulent or manipulative practices. It has the authority to impose civil penalties, seek injunctive relief, and pursue criminal charges through collaboration with law enforcement agencies.
Overall, the Securities and Exchange Commission serves as a crucial regulatory body, striving to protect investors, promote fair markets, and facilitate the efficient allocation of capital within the U.S. securities industry.
