An independent agency of the United States federal government, responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, the natio
The SEC was founded by Congress in 1934, subsequent to the Wall Street Crash of 1929. Therefore, their main focus is on the protection of investors and their exchange assets. American households own more than 58% of the US equity market, through mutual funds, retirement accounts, and other investments, which makes the SEC’s role paramount.
As part of this mission, the SEC requires all market participants to regularly disclose detailed and up-to-date information that investors need to make confident and informed investment decisions. They provide up-to-date investor education and resources through their Office of Investor Education and Advocacy. The SEC protects investors by enforcing federal securities laws to hold wrongdoers accountable and prevent further misconduct.
The SEC is also responsible for helping companies raise capital in order for them to create jobs, develop innovative solutions to problems and provide financial investment opportunities. They are also tasked with maintaining orderly and efficient markets by keeping up with market developments and trends and in turn, adjusting and modernizing their expertise and regulations to keep up with the times.