The Role of the Securities and Exchange Commission

The Securities and Exchange Commission (SEC) plays a crucial role in maintaining the integrity and stability of the U.S. financial markets. Established in 1934 in response to the 1929 stock market crash, the SEC's primary purpose is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC enforces securities laws and regulations, overseeing securities exchanges, brokers, dealers, investment advisors, and mutual funds. Through its regulatory and enforcement powers, the SEC seeks to prevent fraud and manipulation in the financial markets, ensuring transparency and fairness for all market participants. Its work includes overseeing the registration of securities, reviewing financial disclosures from public companies, and monitoring trading activities to detect and address market abuses. The SEC also engages in investor education and outreach to help individuals make informed financial decisions. In summary, the SEC's role is essential in fostering confidence in the financial system by ensuring that markets operate with integrity and transparency.