SEC (Securities and Exchange Commission)

SEC (Securities and Exchange Commission)

The SEC is a U.S. government agency responsible for enforcing federal Securities laws, regulating the Securities industry, and protecting investors. It aims to maintain fair, orderly, and efficient markets, and to facilitate Capital formation.

Key Functions

• Enforcing Securities laws
• Regulating the Securities industry
• OverseEINg the Securities exchanges
• Protecting investors

Examples and Cases

• Enron Scandal: The SEC investigated Enron for accounting fraud and Insider Trading, leading to significant reforms in corporate governance.
• Facebook IPO: The SEC scrutinized Facebook’s initial public offering for potential issues related to disclosure and financial performance.