๐ Do you know about SEC ? ๐
The SEC typically refers to the Securities and Exchange Commission, which is a regulatory authority responsible for overseeing securities markets, protecting investors, and ensuring fair and efficient functioning of financial markets. The main objectives of the SEC are:
1. Investor Protection: Safeguard investors from fraudulent and manipulative practices in the securities markets.
2. Maintaining Market Integrity: Ensure that markets operate transparently and fairly, promoting investor confidence.
3. Facilitating Capital Formation: Help companies raise capital efficiently while maintaining adequate investor protections.
Key Functions:
โข Regulation and Enforcement: The SEC enforces laws that govern the securities industry, including laws related to stocks, bonds, and mutual funds.
โข Disclosure Requirements: Companies are required to provide accurate and timely information about their financial condition and operations.
โข Oversight of Stock Exchanges: The SEC monitors stock exchanges to ensure compliance with regulations.
โข Investor Education: Provide educational resources to help individuals make informed investment decisions.
In the U.S., the SEC was established by the Securities Exchange Act of 1934 following the 1929 stock market crash. Other countries also have similar organizations, such as the Financial Conduct Authority (FCA) in the UK or the Securities and Exchange Board of India (SEBI).
