WHAT IS SEC?
The SEC or Securities Exchange Commission is a government agency in charge of regulating and monitoring the markets and institutions for security and dependency while it also protects investors and administers the rights of the body council of an organization. Specifically, SEC monitors transactions and activities of the internal economic aspects of an institution maintaining equal and fair exchange between markets. Along with a great SEC defense lawyer, they ensure that there are integral and transparent transactions between company to company to prevent fraud and deceptions for orderly and untroubled markets and organizations.
WHAT DOES IT DO?
There are many queries about what is SEC and what does it do. The queries regard with the confusion on its role in the economic and safety of people’s trust given to capital markets. SEC was launched to operate and support the Securities Exchange Act of 1934 after the stock market crash in 1929. Its role in the economy is to give way and open confident agreements and affairs between companies to companies to cater to the wide opportunities of economic advancements in the capital markets. SEC is duly the protector of corporate and retail investors and provides that their rights are exercised through promoting honest and fair deals, information, and agreements of a particular market structure. Hence, it enables investors to benefit from companies and markets that relay trustworthy and reliable facts to their disposal. Through this, there will be smooth and progressive economic advancements.
With the presence of SEC to govern the financial aspects of markets and institutions, scandals and crimes such as illegal trading activities that may cripple the market structure are eliminated. In particular, the SEC checks the stock market prices and exchanges from time to time. The selling and buying of stocks and securities are managed by the power of this agency. The activities and performances of investors, brokers, and managers are directly visible with the SEC’s tracking and regulating capacity. Investments and assets in relation to mutual funds and ETFs are normally tracked so that companies are managed to report laws, activities, and disclose to the public transparent information about a particular investment. Thus, SEC ensures that markets and companies completely follow rules and laws.
Here are some of the detailed and specific roles of SEC beyond its main responsibilities:
* Engaging in many ways with the public including educational programs giving insights and informational initiatives that guide them through their investment endeavors
* Control the trading of securities on equity markets
* Keeping an eye on the market’s fixed income
* Monitor participants in the market that are registered, such as transfer agents, brokers, dealers, and investment advisers
* Verify the financial reports and statements of public corporations
* Supervise credit rating and clearing organizations, and organizations like Financial Accounting Standards Board, Public Company Accounting Oversight Board, and the Financial Industry Regulatory Authority (FINRA).
* SEC makes every investigation and monitoring possible by offering data analysis, research, data gathering, and data retrieval systems.
With the imposition of SEC for companies and markets to comply with the standardized activities with their investors and clients, trust and confidence are built. Furthermore, SEC is the only government body that develops and implements technical support and assistance for the markets and companies to build strong relationships with the investors.