Discuss the role of US Securities and Exchange Commission in regulating Securities Market.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2020
Discuss the role of US Securities and Exchange Commission in regulating Securities Market.
Answer & Explanation:
The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, order, and efficient markets, and facilitate capital formation. As more and more first time investors turn to the markets to help secure their futures, pay for homes, and send children to college, U.S. Securities and Exchange Commission's investor protection mission is more compelling than ever. The laws and rules that govern the securities industry in the United States derive from a simple and straight forward concept, i.e. 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 Securities and Exchange Commission overseas the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the Securities and Exchange Commission 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 Securities and Exchange Commission works closely with many other institutions, including Congress, other federal departments and agencies, the self-regulatory organisations. (e.g. the stock exchanges), state securities regulators, and various private sector organisations. In addition, the Chairman of the Securities and Exchange Commission represents the agency as a member of the Financial Stability Oversight Council (FSOC). The laws that govern the Securities Industry in U.S.: Securities Act of 1933 Securities Act of 1934 Trust Indenture Act of 1939 Investment Company Act of 1940 Investment Advisors Act of 1940 Sarbanes-Oxley Act of 2002 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Topics: Securities Market Regulation
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