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SEC and its duties

Hi. I am wondering what SEC is and what its main duties and responsibilities are. Do we really need it? Thanks

Hi. I am wondering what SEC is and what its main duties and responsibilities are. Do we really need it? Thanks

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3 answers


galaxy20

The United States Securities and Exchange Commission (SEC) is an independent federal government agency whose mission is to protect investors and maintain fair and orderly securities markets. It monitors corporate activities in the United States and protects investors from unfair and manipulative market practices.

The SEC's primary objective is to supervise the financial market - both organizations and individuals. It provides investors with access to key information, such as

  • Registration statements
  • Periodic financial reports
  • Other securities forms

All this information is available in an electronic database known as EDGAR.

The SEC is headed by five Commissioners, one of whom is the President. A maximum of three of the five commissioners can come from the same political party. On the formal side, the SEC is divided into 5 sections:

  • The Corporate Finance Department,
  • Execution department,
  • Investment Management Department,
  • Economic and risk analysis department,
  • Trade and Markets Department.

The purpose of these departments is to control securities institutions, enforce SEC regulations and issue new rules. The agency may only bring civil action as part of policy enforcement. Criminal cases come under the jurisdiction of law enforcement agencies within the Department of Justice. At the same time, the SEC often works closely with such agencies to provide evidence.

The SEC is also divided into 23 offices. The Whistleblower office is worthy of mention. It was created as a result of the Dodd-Frank reform of 2010. This program rewards authorized individuals for sharing information that will lead to successful law enforcement activities. Individuals can receive between 10% and 30% of the total sanction proceeds, which will exceed $1 million.

The United States Securities and Exchange Commission (SEC) is an independent federal government agency whose mission is to protect investors and maintain fair and orderly securities markets. It monitors corporate activities in the United States and protects investors from unfair and manipulative market practices.

The SEC's primary objective is to supervise the financial market - both organizations and individuals. It provides investors with access to key information, such as

  • Registration statements
  • Periodic financial reports
  • Other securities forms

All this information is available in an electronic database known as EDGAR.

The SEC is headed by five Commissioners, one of whom is the President. A maximum of three of the five commissioners can come from the same political party. On the formal side, the SEC is divided into 5 sections:

  • The Corporate Finance Department,
  • Execution department,
  • Investment Management Department,
  • Economic and risk analysis department,
  • Trade and Markets Department.

The purpose of these departments is to control securities institutions, enforce SEC regulations and issue new rules. The agency may only bring civil action as part of policy enforcement. Criminal cases come under the jurisdiction of law enforcement agencies within the Department of Justice. At the same time, the SEC often works closely with such agencies to provide evidence.

The SEC is also divided into 23 offices. The Whistleblower office is worthy of mention. It was created as a result of the Dodd-Frank reform of 2010. This program rewards authorized individuals for sharing information that will lead to successful law enforcement activities. Individuals can receive between 10% and 30% of the total sanction proceeds, which will exceed $1 million.


dryer923

The U.S. Securities and Exchange Commission was established by the U.S. Congress in 1934 to regulate trade in shares, bonds and other securities. After the stock market crash of October 29, 1929, reflections on its causes prompted the Securities and Exchange Commission to undertake appropriate reforms. Controls of the issue and trading of securities have so far been practically non-existent, allowing for any number of securities market fraud and manipulation.

In order to get the stock exchange out of chaos and regain the lost trust of investors and stock market participants - the United States Congress passed laws creating the Securities and Exchange Commission (SEC) and defining its duties. The Securities Act of 1933 required public companies to register the sale and distribution of shares and to regularly disclose financial information in reports.

The Securities Trading Act of 1934 contributed to the creation of the SEC to regulate stock exchanges, brokers, brokerage houses and over-the-counter markets, and to monitor the required reports and financial information. An important law was also the 1935 Wheeler-Rayburn law, which clearly defined the roles of holding companies and introduced the principle of their control. This movement ended the practice of using holding companies to obscure intermingling company properties. Moreover, the act authorized the Securities and Exchange Commission (SEC) to interfere in the case of creating unnecessarily complicated holding entities - able to interfere and break them down into smaller entities when there is a suspicion of unclear organizational and financial structure of companies.

Since then, brokers, dealers and stock exchanges are now legally obliged to put the interests of investors first and treat them in a fair and equitable manner. Congress established the SEC to enforce these rules for the benefit of investors and future market stability.

Subsequent structural and legal changes and reforms to the SEC now allow for full oversight of all market and stock market players and participants to ensure full security and improve the efficiency of the US securities and stock market.

The U.S. Securities and Exchange Commission was established by the U.S. Congress in 1934 to regulate trade in shares, bonds and other securities. After the stock market crash of October 29, 1929, reflections on its causes prompted the Securities and Exchange Commission to undertake appropriate reforms. Controls of the issue and trading of securities have so far been practically non-existent, allowing for any number of securities market fraud and manipulation.

In order to get the stock exchange out of chaos and regain the lost trust of investors and stock market participants - the United States Congress passed laws creating the Securities and Exchange Commission (SEC) and defining its duties. The Securities Act of 1933 required public companies to register the sale and distribution of shares and to regularly disclose financial information in reports.

The Securities Trading Act of 1934 contributed to the creation of the SEC to regulate stock exchanges, brokers, brokerage houses and over-the-counter markets, and to monitor the required reports and financial information. An important law was also the 1935 Wheeler-Rayburn law, which clearly defined the roles of holding companies and introduced the principle of their control. This movement ended the practice of using holding companies to obscure intermingling company properties. Moreover, the act authorized the Securities and Exchange Commission (SEC) to interfere in the case of creating unnecessarily complicated holding entities - able to interfere and break them down into smaller entities when there is a suspicion of unclear organizational and financial structure of companies.

Since then, brokers, dealers and stock exchanges are now legally obliged to put the interests of investors first and treat them in a fair and equitable manner. Congress established the SEC to enforce these rules for the benefit of investors and future market stability.

Subsequent structural and legal changes and reforms to the SEC now allow for full oversight of all market and stock market players and participants to ensure full security and improve the efficiency of the US securities and stock market.


OpenAI BOT

The SEC, or the Securities and Exchange Commission, is a government agency responsible for regulating the securities industry in the United States. Its main duties include enforcing securities laws, regulating the stock exchanges, and protecting investors from fraud and misconduct in the financial markets. Yes, we do need the SEC to ensure the integrity and transparency of the financial markets and to protect investors from potential abuses. Its oversight helps to maintain confidence in the markets and promotes fair and equitable dealings among participants.

The SEC, or the Securities and Exchange Commission, is a government agency responsible for regulating the securities industry in the United States. Its main duties include enforcing securities laws, regulating the stock exchanges, and protecting investors from fraud and misconduct in the financial markets. Yes, we do need the SEC to ensure the integrity and transparency of the financial markets and to protect investors from potential abuses. Its oversight helps to maintain confidence in the markets and promotes fair and equitable dealings among participants.


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