Securities and Exchange Commission (SEC) | USAGov (2024)

FAQs

What problem was Securities and Exchange Commission trying to solve? ›

Protecting Investors

We protect investors by vigorously enforcing the federal securities laws to ensure truth and fairness. We deter misconduct, hold wrongdoers accountable, and provide resources to help investors evaluate their investment choices and protect themselves against fraud.

The Securities and Exchange Commission (SEC) oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

How long does it take for the SEC to investigate alleged securities violations? Longer than you might think. Typically, SEC investigations take two to four years to complete.

The SEC plays an essential role in ensuring fair and efficient markets and protecting investors. Through the six divisions of the SEC, the SEC regulates the investing industry and enforces securities laws.

Over the last few years, the SEC has been criticized for (1) failing to “consistently and aggressively enforce the securities laws and protect investors and the public,” (2) obtaining sanctions that amount to only a slap on the wrist against major financial institutions, (3) settling rather than taking big banks to ...

The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.

The Commission seeks to detect potential problems or issues in the securities markets early and prevent violations of federal securities laws. If violations occur, the SEC alerts investors to possible wrongdoing and takes prompt action to halt and sanction the misconduct.

The Act empowers the SEC with broad authority over all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs).

The SEC's long-standing three-part mission—to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation—remains its touchstone.

Roughly 98 percent of all SEC cases settle. 7 Although there are myriad reasons behind that sizable percentage, suffice it to say that the competing incentives on both sides often have little to do with the merits of the case.

Has the SEC ever lost a lawsuit? ›

The Securities and Exchange Commission was recently handed a significant defeat in SEC v. Heartland Advisors, Inc., when a U.S. District Judge dismissed civil insider-trading charges levied against an adviser and his client.

No, the Securities and Exchange Commission, or “SEC,” cannot initiate a criminal case. The SEC is responsible for monitoring and regulating financial markets.

Our mission was then, and is now, to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. That mission guides us in everything we do, whether it is the cases we bring, the rules we write, or the disclosures we require.

SEC Network (SECN) is an American multinational sports network owned by ESPN Inc., a joint venture between The Walt Disney Company (which operates the network, through its 80% controlling ownership interest) and Hearst Communications (which holds the remaining 20% interest).

The development of federal securities law was spurred by the stock market crash of 1929, and the resulting Great Depression. In the period leading up to the stock market crash, companies issued stock and enthusiastically promoted the value of their company to induce investors to purchase those securities.

The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.