What does the SEC do?

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The Securities and Exchange Commission (SEC) of the United States is an independent federal body responsible for enforcing federal securities laws and establishing securities rules, as well as regulating electronic securities markets and other operations inside the country, and sustaining the securities sector and stock and options exchanges. Securities exchanges, investment advisors, brokerage firms, investment funds, and dealers are all regulated by the Securities and Exchange Commission.

The Security and Exchange Commission encourages the disclosure and dissemination of market-related data, as well as fair dealing and fraud prevention, by having established securities laws and regulations. Its electronic data-gathering, analysis, and retrieval database give investors access to periodic financial reports, registration statements, and other securities documents.

The functions of the Securities and Exchange Commission (SEC):

Protecting investors – the Securities and Exchange Commission (SEC) protects investors by actively implementing federal securities laws in order to make wrongdoers accountable and prevent potential wrongdoing.

Facilitating capital formation – entrepreneurs and businesses can use the SEC’s regulatory framework to gain access to America’s capital markets, which would enable them to create jobs, produce life-changing technologies and innovations, and provide financial possibilities for individuals or businesses who invest in them.

Maintaining fair, orderly, and efficient markets – in the midst of substantial market innovations and trends, the SEC must be responsive and adaptive. The SEC keeps a close eye on the market and updates and modernizes rules, regulations, knowledge, and monitoring tools and actions as needed.

About the author

Pieter Borremans

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