Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is a U.S. government regulatory agency responsible for enforcing federal securities laws and regulating the securities industry, including stock exchanges, brokerage firms, and publicly traded companies. The SEC’s mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation. The SEC oversees disclosures from public companies to ensure transparency and prevent fraud, insider trading, and other forms of market manipulation.

Example

The SEC requires publicly traded companies to file quarterly and annual reports, such as Form 10-K, to provide investors with transparent financial information.

Key points

• U.S. regulatory agency overseeing the securities industry.

• Protects investors, ensures market transparency, and enforces securities laws.

• Regulates stock exchanges, brokerage firms, and public companies.

Quick Answers to Curious Questions

What is the role of the SEC in financial markets?

The SEC enforces securities laws, regulates the securities industry, and ensures transparency and fairness to protect investors.

How does the SEC protect investors?

The SEC requires public companies to disclose financial information, prevents fraud and insider trading, and enforces regulations to maintain market integrity.