Securities and exchange commission
law and rules that govern the securities industry
- all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, so long as they hold it.
SEC requirements
- public companies must disclose meaningful financial and other information to the public
SEC oversees
- securities exchanges - securities brokers and dealers - investment advisors - mutual funds --> promote disclosure of important market-related information, maintaining fair dealing, and protecting against fraud
need for the SEC
- stocks, bonds, and other securities can lose value -- there are no guarantees
banking deposits
guaranteed by the federal government
SEC overall
- to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation -