what is the sec and their function s for investors?

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Expert Solution

Sec is the US Securities and exchange commission which came into picture after the market crash of Oct 1929. As the general public lost all its confidence in the US financial system the US Government start identifying the major problems and started suggesting the solutions for the same. Based on the results thus obtained the securities act of 1933 was passed and the very next the Securities Exchange Act of 1934 came into picture which created the Securities Exchange commission with a mission to basically to restore the confidence of the common investor in the US financial System and to promote the stability of the US financial markets.

Main areas of the SEC enforcement include Insider trading, Frauds and performs three main functions for the benefits of the investors and they are:-

Protect the investors from various frauds, misleading or false information.
To ensure that the financial markets work in an efficient , fair and orderly manner.
Help the companies in the capital formation.

We can say that SEC is one governing body which is there to catch those who are breaking its rules and trying to hamper the investor confidence in the US financial industry and in the process of doing so it aims to keep the markets honest and maintain investor confidence.

jeff jeffy answered 2 hours ago

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