Securities and Exchange Commission (SEC)

Securities and Exchange Commission (SEC) is regarded as an independent federal government agency and is responsible for the maintenance of orderly and fair markets, capital formation and giving protection to the investors. Moreover, SEC seeks to promote full public disclosure by providing periodic financial statements, access to registration statements and other securities-related forms to the investors.

It is important for you to understand that, when the company issues new securities, it must register such securities with the SEC and then only it can be allowed to sell those securities in the public markets. All brokers, financial firms, asset management companies, advisory firms and their professional representatives must be registered with the SEC in order to carry out their business.

The SEC is empowered to bring a civil action against the person engaging in unlawful activities and when it comes to criminal cases, they work closely with the Department of Justice.

Main functions of Securities and Exchange Commission (SEC)

·       Protecting and informing the investors;

·       Facilitating the capital formation;

·       Regulating the securities markets; and

·       Enforcement of Securities Law.

 

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