1.Definition:
The Securities and Exchange Commission (SEC) is a U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry, including stock and options exchanges. It was established by the Securities Exchange Act of 1934.
2.Mission:
The SEC's primary mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation. It achieves these goals through the enforcement of securities laws and regulations.
3.Functions:
Regulation: The SEC regulates the securities industry, including securities exchanges, brokerage firms, and investment advisors. It ensures that these entities operate fairly and transparently.
Enforcement: The SEC has the authority to bring civil enforcement actions against individuals or companies that violate securities laws. This includes insider trading, accounting fraud, and other deceptive practices.
Disclosure Requirements: Companies issuing securities must provide accurate and timely information to the public. The SEC sets disclosure requirements to ensure investors have access to relevant information for making informed decisions.
4.How It Works:
Registration: The SEC requires companies to register their securities offerings, providing detailed information about their operations, financial condition, and management.
EDGAR Database: The SEC maintains the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system, which houses the filings of registered companies. Investors can access this database to review financial reports and other disclosures.
Investor Protection: The SEC monitors the activities of investment professionals and firms to protect investors from fraudulent practices. It provides educational resources for investors to make informed decisions.
5.Updates and Reviews:
The SEC regularly updates its regulations to adapt to changes in the financial markets.
Articles and updates, like the one mentioned in your request, provide information on recent developments, enforcement actions, and changes in policies.
