Welcome to the Investors Trading Academy talking
glossary of financial terms and events.
Our word of the day is “SEC - Security & Exchange
Commission - USA”
The Securities Exchange Act of 1934 governs
the way in which the nation's securities markets
and its brokers and dealers operate.
When the stock market crashed in October 1929,
so did public confidence in the U.S. markets.
Congress held hearings to identify the problems
and search for solutions.
Based on its findings, Congress – in the
peak year of the Depression – passed the
Securities Act of 1933.
The following year, it passed the Securities
Exchange Act of 1934, which created the SEC.
The SEC has four major divisions.
1.
The Division of Corporation Finance ensures
corporate disclosure of important information
to the investing public.
2.
The Division of Trading and Markets ensures
fairness, order and efficiency in market activities.
3.
The Division of Investment Management helps
protect investors and encourages capital formation
through oversight and regulation of the investment
management industry.
4.
The Division of Enforcement investigates securities
law violations and initiates civil and criminal
actions.
The SEC is composed of five commissioners
appointed by the U.S. President and approved
by the Senate.
The statutes administered by the SEC are designed
to promote full public disclosure and to protect
the investing public against fraudulent and
manipulative practices in the securities markets.
Generally, most issues of securities offered
in interstate commerce, through the mail or
on the internet must be registered with the
SEC.
