The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, established in the aftermath of the Wall Street Crash of 1929. The SEC's primary mission is to enforce laws against market manipulation.
In addition to the Securities Exchange Act of 1934, which created it, the SEC enforces several other statutes, including the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the Sarbanes–Oxley Act of 2002, among others. The SEC's mission is threefold: to protect investors, maintain fair and efficient markets, and facilitate capital formation.
To fulfill its mandate, the SEC enforces requirements for public and regulated companies to submit quarterly and annual reports, as well as other periodic reports. In addition to financial reports, companies must provide a narrative account known as "management discussion and analysis" (MD&A) that covers their past year's operations and future goals. The SEC maintains an online database called EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) where investors can access this information.
Quarterly and semiannual reports are crucial for informed investing in the capital markets since unlike banking, investments here aren't federally guaranteed. Mandatory disclosure of financial information helps level the playing field and reduces insider trading and fraud.
The SEC also provides publications on investment-related topics for public education, and it accepts tips and complaints from investors to investigate violations of securities laws. The SEC never comments on ongoing investigations.
Historically, before federal securities laws and the SEC, securities trading was regulated by state-level blue sky laws. These laws required registration of all securities offerings and sales and aimed to protect the public from fraud. However, they were often considered ineffective.
The SEC was established by the Securities Act of 1933 and the Securities Exchange Act of 1934, as part of Franklin D. Roosevelt's New Deal program. The Securities Act of 1933 federally regulates securities offerings across state lines, requiring issuers to register distributions before sale. The Securities Exchange Act of 1934 regulates secondary trading in securities. Both acts were enacted after the Pecora Commission hearings on securities market abuses.
Joseph P. Kennedy Sr., a self-made multimillionaire and financier, was the inaugural Chairman of the SEC, appointed by Roosevelt in 1934. Kennedy's leadership aimed to restore investor confidence, integrity in securities markets, end insider trading, and establish a comprehensive system of securities registration.
Subsequent SEC commissioners and chairmen have included notable figures like William O. Douglas, Jerome Frank, and William J. Casey. Since 1994, most registration statements filed with the SEC can be accessed online through the EDGAR system.
By: Best Crypto Exchanges
source:https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission
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