Wednesday’s Word: SEC

By Dylan Donley, Spring 2014 Graduate Research Assistant

The Security Exchange Commission, otherwise known as the SEC, was created by Congress through the enactment of the Securities Act of 1933 and 1934 following the Great Depression. As an organization, the SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Its chief responsibilities include:

  • Interpreting and enforcing federal securities laws;
  • Issuing new rules and amending existing rules;
  • Overseeing the inspection of securities firms, brokers, investment advisers, and ratings agencies;
  • Overseeing private regulatory organizations in the securities, accounting, and auditing fields; and
  • Coordinating U.S. securities regulation with federal, state, and foreign authorities.