The Securities and Exchange Commission’s, or commonly know as the S.E.C., primary objective is to try and protect all investors in the market of securities that may or not be as secure as saying the type of investments that may be made through a bank; i.e. bonds, stocks, and other various securities investments. They develop, process, amend and enforce laws that keep companies, and the people that manage them, in line so that they are able to give clear and honest information to investors that might be looking to put there money in a new venture.
These laws, in turn, require that these companies disclose certain types of information such as past and current financial history as well as many other company details that the common investor may want and need to know before actually buying into that specific firm.
Along with this basic goal, the S.E.C. also oversees other organizations such as various stock exchanges, public utility companies, and mutual funds brokers rooted in the United States. The principal purpose, again here, is to enforce the laws already set up and to make sure that the info provided to the public is not misleading and therefore secure. Some of the exact things that they watch out for include, various types of fraud such as giving false or slanted facts, as well as insider trading.
The S.E.C. is a government organization and therefore the leaders of this team are elected officials. Although the public does not directly elect the five commissioners that head the organization, they are chosen by the President as well as approved by the present ruling senate. Along with these five key commissioners the S.E.C. is made up of more than 2,900 employees, and like many other federal agencies, its’ headquarters are stationed in Washington D.C.
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