Roles Of The Sec

The three roles of the SEC are protection, lovelyness and capital formation.
business charts with sell? image by Andrew Brown from Fotolia.com The Security and modify Commission (SEC) of the United States was formed by the 1934 Securities Exchange Act. It was passed during the spectacular Depression with the aim of restoring consumer confidence in the investors markets by ensuring they operated clean and that plentiful and truthful investing information was provided to the public. According to the SECs functionary website, the three primary roles of the SEC are protecting investors, maintaining fair and efficient markets and facilitating capital formation.

Protect Investors
The SEC oversees the actions of self-regulatory organizations (SROs) designed to substantiate and enforce rules of operation of their member institutions: publicly held corporations, investment companies, investment advisers, stock brokers and public utilities. These SROs include the stock exchanges, the Municipal Securities control Making Board (MSRB), the National Association of Securities Dealers (NASD) and the Financial industry Regulatory Authority (FInRA).

The addition of the Investment Advisers Act of 1940 provides excess protection from fraudulent advisers and brokers.



It requires that everyone receiving compensation for investment advice must be registered with the SEC. If any statute is violated, the SEC can revoke the advisers registration.

The SECs component part of Corporation Finance is chared with ensuring the disclosure of accurate and timely unified information to investors.

Maintain Fair and Efficient Markets
The SECs variance of profession and Markets is charged with maintaining organized, evenhanded and proficient securities markets. The divisions staff monitors the daily trading operations of the individuals and organizations involved in the securities markets. These entities include the stock exchanges, the SROs mentioned previously and securities firms. The Division of...If you want to get a full essay, order it on our website: Orderessay



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