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.