SEC United States Securities And Exchange Commission Role And Impact

Background of the establishment of SEC

In response to the widespread losses caused by the 1929 crash of the U.S. stock market, the SEC was established in 1934 under the Securities Exchange Act, with the goal of preventing market manipulation and fraud, and restoring investor confidence.

Main regulatory functions

SEC is responsible for regulating securities exchanges, reviewing the financial reports of listed companies, combating fraud and insider trading, and continuously developing and improving the laws and regulations of the securities market.

Protecting the interests of investors

Ensure that investors receive true and complete information through mandatory disclosure and strict regulations, reduce investment risks, and enhance a fair trading environment.

Importance to financial markets

The SEC enhances market transparency and credibility, attracts more investors to participate, stabilizes market order, and promotes the healthy development of financial markets in the United States and even globally.

Summary

SEC is the world’s most authoritative securities regulatory agency, playing an important role in maintaining fair, transparent, and efficient market operations.