The U.S Securities Exchange Commission is the federal body governing financial accounting securities and exchange in the USA.
SEC functions with an aim to safeguard the financial accounting sector by maintaining order and keeping the investors educated and well informed about the securities market. SEC seeks to promote capital formation as it is essential to sustain economic growth.
SEC follows a simple rule to govern the securities industry via a simple concept: all investors, irrespective of the kind, should have access to certain basic facts regarding an investment before purchasing it, and so long as they own it. For the same, SEC makes sure that companies provide financial and other meaningful data to the public. This enables the public to have a common pool of information regarding the different investment opportunities in the market and decide for themselves on what could be the right choice.
SEC inspects the key players in the securities world (securities exchanges, securities brokers and dealers, investment advisors, and mutual funds) regularly to avoid frauds.
Among other responsibilities SEC is assigned to interpret the federal securities law, amend existing rules, create new rules, oversee securities firm, brokers, investment advisers, and ratings agencies, oversee private regulatory organizations in the securities, accounting, and auditing fields and coordinate U.S. securities regulation with federal, state, and foreign authorities
For more information on SEC’s mission, functionality, structure please refer to
Links Used: http://www.sec.gov/