Definition
The Securities and Exchange Commission (SEC) is the U.S. federal regulatory agency responsible for enforcing securities laws, protecting investors, maintaining fair and orderly markets, and facilitating capital formation. Established in 1934 after the Great Depression, the SEC oversees securities exchanges, broker-dealers, investment advisers, and mutual funds. It requires public company disclosures (10-K, 10-Q filings), investigates fraud, and prosecutes violations. SEC filings are a crucial source of company information for investors.
Example
When a company goes public, it must file an S-1 registration statement with the SEC. Quarterly 10-Q and annual 10-K filings provide detailed financial information. The SEC investigates and charges insider trading violations.
FAQ
What is SEC (Securities and Exchange Commission)?
The U.S. federal agency responsible for regulating securities markets and protecting investors.
Why is SEC (Securities and Exchange Commission) important?
SEC (Securities and Exchange Commission) helps investors evaluate regulatory and make more informed decisions.