Question

Discuss The Security and Exchange commission.

Answer 1

Securities and Exchange Commission (SEC)

1. The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.
2. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. It also approves registration statements for book runners among underwriting firms.
3. It was created by Congress in 1934 as the first federal regulator of the securities markets.

Working of Securities and Exchange Commission (SEC)

1. The SEC's primary function is to oversee organizations and individuals in the securities markets, including securities exchanges, brokerage firms, dealers, investment advisers, and investment funds through established securities rules and regulations.
2. The SEC promotes disclosure and sharing of market-related information, fair dealing, and protection against fraud.
3. It provides investors with access to registration statements, periodic financial reports, and other securities forms through its electronic data-gathering, analysis, and retrieval database, known as EDGAR.

Divisions And Their Respective Roles

The SEC consists of five divisions and 23 offices. Their goals are to interpret and take enforcement actions on securities laws, issue new rules, provide oversight of securities institutions, and coordinate regulation among different levels of government. The five divisions and their respective roles are:

• Division of Corporate Finance. Ensures investors are provided with material information (that is, information relevant to a company's financial prospects or stock price) in order to make informed investment decisions.
• Division of Enforcement. In charge of enforcing SEC regulations by investigating cases and prosecuting civil suits and administrative proceedings.
• Division of Investment Management. Regulates investment companies, variable insurance products, and federally registered investment advisers.
• Division of Economic and Risk Analysis. Integrates economics and data analytics into the core mission of the SEC
• Division of Trading and Markets. Establishes and maintains standards for fair, orderly, and efficient markets.

In Nut Shell :

The Securities and Exchange Commission (SEC) is responsible for overseeing the securities markets and protecting investors. The SEC can bring only civil actions against lawbreakers, but works with the Justice Department on criminal cases. After the Great Recession, the SEC recovered close to $4 billion in penalties and other damages as a result of its prosecutions.

.