What is SEC (Security And Exchange Commission

The Securities and Exchange Commission (SEC) is a vital regulatory body in the United States that plays a crucial role in overseeing the securities industry and protecting investors. Established in 1934 in response to the stock market crash of 1929 and the subsequent Great Depression, the SEC's primary mission is to ensure fair and efficient markets, facilitate capital formation, and maintain investor confidence.

One of the SEC's core functions is to enforce securities laws and regulations. It achieves this through a combination of rulemaking, enforcement actions, and oversight of key market participants. The SEC has the authority to bring civil enforcement actions against individuals and entities that violate securities laws, ranging from insider trading to accounting fraud. This enforcement role helps maintain market integrity and fosters trust among investors.

The SEC is responsible for regulating various participants in the securities industry, including securities exchanges, broker-dealers, investment advisers, and rating agencies. By setting and enforcing standards for these entities, the SEC seeks to create an environment where investors can confidently participate in the financial markets. The commission also reviews and approves registration statements for securities offerings, ensuring that companies provide accurate and complete information to the public…