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The Securities and Exchange Commission (SEC) is the US government body in charge of policing and directing the securities sector, which includes stock exchanges, broker-dealers, investment advisers, and mutual funds. The SEC's main responsibilities are to safeguard investors from fraud and to advance just and efficient markets.
In reaction to the 1929 stock market crash and the subsequent Great Depression, the Securities Exchange Act of 1934 established the SEC. To guarantee that investors have access to accurate and comprehensive information about publicly traded companies, the agency is in charge of implementing federal securities laws and overseeing the securities sector.
The SEC is charged with a number of significant duties, such as overseeing the securities markets, enforcing securities laws, requiring public businesses to disclose information, and registering securities. The agency has the authority to file civil lawsuits for violations of securities laws against people or businesses, and it also has the authority to submit cases to the Department of Justice for criminal prosecution.
The United States Senate confirms the five commissioners of the SEC after the President of the United States appoints them. With its main office in Washington, D.C., the organization also operates 11 regional offices across the country.
