Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is a federal government agency responsible for regulating the securities industry, enforcing federal securities laws, and protecting investors. The agency was created by the Securities Exchange Act of 1934, passed in response to the stock market crash of 1929 and the Great Depression. It oversees securities exchanges, brokers and dealers, investment advisors, and mutual funds to promote fair dealing, disclose important market information, and prevent fraud.

The SEC has a three-part mission: to protect investors; to maintain fair, orderly, and efficient markets; and to facilitate capital formation. The agency ensures that companies and individuals who sell securities follow the rules and regulations outlined in the federal securities laws. It also gives investors access to important information about companies they may be interested in investing in, such as financial statements and other disclosures.

The Securities and Exchange Commission is led by a five-member commission appointed by the President of the United States and confirmed by the Senate. The commission is responsible for making rules and regulations governing the securities industry and enforcing those rules through investigations and enforcement actions.