What does the SEC department do?

The SEC is a government organization that sets rules and regulations regarding the issuance, marketing, and trading of securities . The SEC is also charged with protecting investors.

Who does the SEC regulate?

The Division regulates the major securities market participants, including broker-dealers, self-regulatory organizations (such as stock exchanges, FINRA, and clearing agencies), and transfer agents .

Is the SEC a federal agency?

The SEC is an independent Federal agency established pursuant to the Exchange Act. It is headed by a bipartisan five- member Commission, comprised of the Chairman and four Commissioners, who are appointed by the President and confirmed by the Senate.

How does SEC regulate?

The SEC interprets and enforces the federal laws that govern the U.S. securities industry , which are based on two basic principles: Investors should have access to all pertinent information about a security prior to making an investment decision.

The SEC is an independent agency that is not federally funded, although it is considered part of the U.S. government. It receives its funding from transaction fees that the U.S. Treasury requires stock exchanges and broker-dealers to pay.

Does the SEC only regulate public companies?

The U.S. Securities and Exchange Commission, or SEC, regulates the offer and sale of all securities, including those offered and sold by private companies .

Is the SEC funded by Congress?

Funding the SEC does not increase the federal deficit or cost taxpayers any money. Its funding is fully offset by transaction fees from self-regulatory organizations . The SEC is the only independent federal agency that is tasked explicitly with protecting investors.

What kind of authority does the SEC have?

The Act empowers the SEC with broad authority over all aspects of the securities industry . This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs).

What branch is the SEC under?

The U.S. Securities and Exchange Commission, among the independent agencies of the Executive Branch , recognized regulation had economic costs.

How many companies does the SEC regulate?

Description of the SEC Approximately 1,150 of the 12,000 companies registered with the SEC are non-US companies.

Does the SEC regulate financial reporting?

The SEC issues guidance and regulations on the accounting methods to be used in financial statements that are filed with it by publicly traded companies pursuant to the federal securities laws.

Does the SEC regulate financial advisors?

The Securities and Exchange Commission (the "Commission" or "SEC") regulates investment advisers , primarily under the Investment Advisers Act of 1940 (the "Advisers Act"), and the rules adopted under that statute (the "rules").

Securities and Exchange Commission (SEC)

The Securities and Exchange Commission oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.