US Securities and Exchange Commission (SEC)


    What is the SEC?

    The US Securities and Exchange Commission (SEC)is an independent regulatory body created by the US Congress in 1934 to restore confidence in the financial markets and protect investors.

    Its primary task is to ensure that criminal acts, such as fraud and insider dealing, do not take place, as this can create an unfair trading environment.

    What powers does the SEC have?

    The SEC has widespread powers for regulating markets – it is responsible for licensing and regulating all US exchangesbrokers and dealers, and any company that is publicly listed.

    The SEC encourages transparency by insisting that banks and securities issuers make as much information as possible open to the public. In the case of a serious breach of regulation, the SEC will help to secure a criminal prosecution.

    As with other countries, the SEC requires these listed companies, licensed traders and brokers to submit regular reports, which are then made available to the public. This helps to support its drive towards transparency in the markets by promoting honesty amongst market participants. It is also tasked with monitoring all corporate takeovers.

    Any issuer of securities – whether through the mail or online – must be registered with the SEC.

    Read about other types of financial regulators:

    Learn more about the US Securities and Exchange Commission:

    US Securities and Exchange Commission website

    SEC wikipedia