- Published: September 18, 2022
- Updated: September 18, 2022
- University / College: The University of Georgia
- Language: English
- Downloads: 48
The U. S. Securities and Exchange Commission is a federal agency created by Congress to regulate securities trading, protect investors and control stock and option exchanges in the United States. The Commission was formed in 1934 by U. S. Congress to restore public confidence in capital markets after the stock market crashed in 1929. It was created to increase stability in the markets by protecting investors and enforcing the federal securities laws.
The primary overseer of the U. S. securities laws is headquartered in Washington and has 11 Regional Offices located throughout the country.
The U. S. Securities and Exchange Commission (SEC) has such responsibilities as regulation of the securities markets by controlling the activities of brokers and ratings agencies, enforcing securities laws and inspecting private regulatory organizations. One of the main duties of the SEC is protecting investors against fraudulent activities in the securities industry. The Commission is also in charge of issuing new rules for the firms in auditing and securities fields.
There are five Divisions of the Securities and Exchange Commission and each of them has its own functional responsibilities. The Corporation Finance Division controls the disclosure of information made by the companies to the public. The Division of Trading and Markets makes sure that all market activities are fair and competitive. The Investment Management Division interprets laws and regulations that provide the investor protection. The key objective of the Division of Enforcement is investigating laws violations. Finally, the Economic and Risk Analysis Division is responsible for analyzing the economic data that helps the SEC to increase its efficiency.
The U. S. Securities and Exchange Commission is the main regulator of the U. S. securities world, and it provides the necessary protection of the investing public.
References
U. S. Securities and Exchange Commission. (n. d.). The Investor’s Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation reener. Retrieved from http:// http://www. sec. gov/about/whatwedo. shtml
