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Securities & Exchange Commission

An agency of the U.S. Government that serves at the primary regulator of the securities trade. It attempts to ensure that all trades are fair, and that no price manipulation or insider trading occurs. Additionally, the SEC promotes full disclosure and monitors mergers and acquisitions to ensure continued competitiveness. It works with several self-regulatory organizations, notably FINRA, to enforce its regulations. Most securities offered through interstate commerce must be registered with the SEC.

The SEC was created in 1934 as part of the New Deal to prevent excessive speculation. It is overseen by five commissioners, who are appointed by the President of the United States upon confirmation by the Senate. No more than three commissioners may belong to the same political party.


Securities and Exchange Commission (SEC).

The Securities and Exchange Commission (SEC) is an independent federal agency that oversees and regulates the securities industry in the United States and enforces securities laws.

The SEC requires registration of all securities that meet the criteria it sets, and of all individuals and firms who sell those securities. It's also a rule making body, with a mandate to turn the law into rules that the investment industry can follow.

Established by Congress in 1934, the SEC sets standards for disclosure by publicly traded corporations, and works to protect investors from misleading or fraudulent practices, including insider trading.

It has four divisions: Corporate Finance, Market Regulation, Investment Management, and Enforcement.


See Securities and Exchange Commission.

References in periodicals archive ?
In addition, such an internal probe allows a corporation to assess whether it has committed securities violations, and whether it should actively defend itself in the SEC investigation or, instead, fully cooperate with the SEC by providing information about the violations.
Once a corporation informs the SEC that it is conducting an internal investigation, the commission will expect to be given the results of the probe.
In most cases, being unnecessarily aggressive with the SEC official hurts your ability to handle a situation quickly and cost-effectively.
If you disagree with the SEC official, ask for a second opinion.