The Securities and Exchange Commission (SEC) is a federal administrative agency that was established to monitor markets, enforce laws regarding securities and investments, and protect investors. Founded 85 years ago during the Great Depression, the SEC has played a vital role in maintaining fair and orderly securities markets.
The Securities Exchange Act of 1934 (SEA) was created to govern securities transactions on the secondary market, after issue. Its goal was to provide a regulatory framework that promotes transparency, fairness, and efficiency in the marketplace. The SEC's primary responsibility is to enforce the SEA and other federal securities laws, ensuring that investors have access to accurate and timely information.
To fulfill its mandate, the Securities and Exchange Commission oversees financial markets, market participants, and securities professionals. It monitors trading activities and enforces regulations to prevent insider trading, market manipulation, and other fraudulent practices. The SEC also reviews financial statements and disclosures, ensuring that companies provide accurate and complete information to the public.