Securities and Exchange Commission (SEC)
The federal agency regulating securities markets.
What is Securities and Exchange Commission (SEC)?
Created by the Securities Exchange Act of 1934. It enforces securities law, requires issuer disclosure, oversees exchanges and SROs, and registers investment advisers above the state threshold. Its mandate is investor protection, fair and efficient markets, and capital formation.
Securities and Exchange Commission (SEC): a worked example
Public companies file 10-Ks and 10-Qs with the SEC.
More terms in Regulation & Professional Duty
Fiduciary Duty
A legal obligation to act in the client's best interest.
Suitability Standard
A recommendation must be appropriate given the client's profile.
Regulation Best Interest (Reg BI)
SEC rule requiring broker-dealers to act in a retail client's best interest.
Registered Investment Adviser (RIA)
A firm registered to give advice for a fee, holding fiduciary duty.
Broker-Dealer
A firm that executes trades as agent (broker) or principal (dealer).
FINRA
The self-regulatory organization overseeing broker-dealers.
SIPC
Insurance against broker failure - not against investment losses.
Securities Act of 1933
The 'truth in securities' law governing new issues.