SEC
The Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. The SEC is responsible for administering the federal securities laws, which are designed to promote full public disclosure and protect investors against fraud. The SEC also oversees the regulation of the securities industry, including stock exchanges, broker-dealers, investment advisors, and mutual funds.
History of the SEC
The SEC was created in 1934 by the Securities Exchange Act. The Act was passed in response to the stock market crash of 1929 and the Great Depression that followed. The SEC was established to restore investor confidence in the markets and to protect investors from fraudulent and manipulative practices. The SEC is led by five commissioners, appointed by the President and confirmed by the Senate, who serve staggered five-year terms. The SEC is headquartered in Washington, D.C.
Comparison of SEC Regulations
| Regulation | Description |
|---|---|
| Regulation A | Allows companies to offer and sell securities to the public without registering with the SEC. |
| Regulation D | Allows companies to offer and sell securities without registering with the SEC, but only to accredited investors. |
| Regulation S | Allows companies to offer and sell securities without registering with the SEC, but only to non-U.S. investors. |
Summary
The SEC is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. The SEC was created in 1934 by the Securities Exchange Act in response to the stock market crash of 1929 and the Great Depression that followed. The SEC is led by five commissioners, appointed by the President and confirmed by the Senate, who serve staggered five-year terms. For more information about the SEC, visit the SEC website at https://www.sec.gov/.
See Also
- Securities Act of 1933
- Securities Exchange Act of 1934
- Investment Company Act of 1940
- Investment Advisers Act of 1940
- Securities Investor Protection Act of 1970
- Securities Act Amendments of 1975
- Securities Exchange Act Amendments of 1975
- Securities Litigation Reform Act of 1995
- Sarbanes-Oxley Act of 2002
- Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
