The Securities and Exchange Commission, SEC, is an independent federal agency responsible for overseeing securities markets in order to protect investors, maintain fair securities exchange, and facilitate the formation of capital. Congress created the SEC in 1934 in the wake of the Great Depression to help restore investor confidence in the securities market. It is headed by five representatives, each of whom serves a term of five years. To promote non-partisanism, no more than three representatives may be from the same political party. Their terms are staggered so that only one representative is replaced each year. SEC has four primary missions: The specific duties of the Commission (and its five commissioners) are outlined in Section 10 of the Securities Exchange Act of 1934. These responsibilities include: The SEC has five divisions to interpret and enforce securities laws, provide oversight, and coordinate regulation at different levels of government. The five divisions are: The SEC does not process criminal suits, however, it does work closely with organizations that do, such as the Department of Justice. Today the SEC continues its history of facilitating a fair and legal market space for investors. It is involved in nearly every major case of financial misconduct, with its most common offenses being insider trading, accounting fraud, and the dissemination of misleading or false information. What Are Its Goals?
Divisions of the SEC
Examples of SEC Cases
Securities and Exchange Commission (SEC) FAQs
What does SEC stand for?
SEC stands for the Securities and Exchange Commission.
What is the Securities and Exchange Commission?
The Securities and Exchange Commission, SEC, is an independent federal agency responsible for overseeing securities markets in order to protect investors, maintain fair securities exchange, and facilitate the formation of capital.
How is the SEC used today?
Today, the SEC is involved in nearly every major case of financial misconduct, with its most common offenses being insider trading, accounting fraud, and the dissemination of misleading or false information.
What are the divisions of the SEC?
The SEC has five divisions to interpret and enforce securities laws, provide oversight, and to coordinate regulation at different levels of government. The five divisions are: Division of Corporate Finance, Division of Enforcement, Division of Investment Management, Division of Economic and Risk Analysis, and Division of Trading and Markets.
When was the SEC created?
Congress created the SEC in 1934 in the wake of the Great Depression to help restore investor confidence in the securities market.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.