As an independent agency of the government, the US Securities and Exchange Commission (SEC) is responsible for the enforcement of federal laws and regulations which regulate securities, the stock exchanges, the securities industry, and the electronic markets for securities.
Following the Crash of 1929, the body was established as an independent structure by the US Congress in 1934. The main reasons for the SEC establishment were the need to prevent corporate abuse and to regulate the stock market. The body was empowered to license and regulate the stock exchanges and companies, dealers and brokers conducting trading on the stock market.
At present, there are seven major laws administered by the SEC Securities and Exchange Commission These are the Securities Exchange Act of 1934, the Securities Act of 1933, the Investment Company Act of 1940, the Trust Indenture Act of 1939, the Sarbanes-Oxley Act of 2002, the Investment Advisers Act of 1940, and now the Credit Rating Agency Reform Act of 2006.
The SEC is also accorded the enforcement authority to proceed with measures against companies or individuals who commit financial fraud, provide false and misleading information, commit insider trading or engage in other security law violations. The SEC also works hand in hand with other criminal agencies in an attempt to prosecute companies or individuals who commit criminal offenses.
The SEC requires that the public companies submit their quarterly or annual reports and other periodic statements. These reports are of prime importance to investors and help them make decisions, related to investments in the capital markets. Investments on these markets are not guaranteed by the government in the same way as banking is.
The EDGAR system is used by the SEC for the public disclosure of reports. In order to educate the public, the SEC also offers publications on topics related to investment. In addition, the system collects complaints, tips, and suggestions.
Free charting webinar
Mon, Nov 18th, 2013 12:00 PM - 1:00 PM EST
During the 60 minute session Paul Coghlan, founder of Coghlan Capital, looks at current charts for currencies, precious metals, US indices, highlighting turns and low risk entry points using the Median line analysis methodology.
Median line analysis reduces risk and increases the chartists ability to see trend direction, trend strength and highlight entry and exit levels.
Seats are limited so be sure to reserve your spot today. The webinar will be recorded, by signing up you'll receive an email with the webinar replay afterwards.