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 -