The mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Discuss in brief.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2022
The mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Discuss in brief.
Answer & Explanation:
The Securities and Exchange Commission (SEC) strives to promote a market environment that is worthy of the public's trust. The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers. The SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud. Though it is the primary overseer and regulator of the U.S. securities markets, the SEC works closely with many other institutions, including Congress, other federal departments and agencies, the self-regulatory organizations (e.g., the stock exchanges), state securities regulators, and various private sector organizations. In addition, the Chairman of the SEC represents the agency as a member of the Financial Stability Oversight Council (FSOC).
Topics: Securities Market Regulators
Related Questions in this Topic
- Write a brief note on US Securities and Exchange Commission.
- What is the difference between the BdL market, which is an EU-regulated market, and the Euro MTF market, which is an exc...
- One of the measures of the principles of the corporate governance and protection of minority shareholder is "Equitable t...
- Rajesh, the promoter of the company had acquired 10000 equity shares of the company on 5th April, 2025, for a market pri...
- Explain the reasons for wide range of businesses joining Alternative Investment Market (AIM) of London Stock Exchange.