U.S. Securities and Exchange Commission (SEC)

The SEC (Securities and Exchange Commission) is an independent federal government agency responsible for protecting investors, maintaining fair and efficient markets, and facilitating capital formation in the United States.

The SEC regulates the securities industry through

• enforcing federal securities laws and proposing new regulation
• requiring public companies to disclose meaningful financial information;
• overseeing securities exchanges, brokers, dealers, and investment advisors;
• investigating and prosecuting civil cases for securities law violations;
• providing investor education resources and maintaining the EDGAR database;
• monitoring securities markets to ensure orderly and fair trading;
• adapting regulations to new market developments and technologies; and
• collaborating with international regulators to promote consistent global standards.

The SEC oversees FINRA and approves its rules and operations. It also works with NASAA to create consistent state and federal securities regulations and to enhance investor protection.