The Securities and Exchange Commission (SEC) is the United States agency with primary responsibility for enforcing federal securities laws. The SEC, which was created following the market crash of 1929, describes its mission as being to “protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.” Securities laws and regulations focus on achieving these goals by: (1) requiring companies offering securities to the public to tell the truth about their businesses, the securities being sold, and the risks involved in investing; and (2) requiring those who sell and trade securities to treat investors fairly and honestly.
The laws enforced by the SEC include:
The SEC has primary responsibility for enforcing the securities laws and for proposing and enacting rules to implement the securities laws. Through these laws and regulations, the SEC regulates the issuance and trading of equities, equity options, corporate bonds, and municipal bonds, as well as securities industry participants, the stock and options exchanges, and other activities and organizations. The Commodity Futures Trading Commission regulates the activities and actors of the derivatives markets.