Securities and Exchange Commission (SEC)

The U.S. government agency that regulates securities markets, enforces securities laws, and requires public companies to provide transparent financial reporting.

#Accounting Principles and Standards#Regulatory Framework#Capital Markets

Securities and Exchange Commission (SEC)

The U.S. government agency responsible for enforcing federal securities laws, proposing securities rules, and regulating the securities industry, stock exchanges, and public company reporting.

For example, when a company wishes to issue shares to the public, it must file registration statements and prospectuses with the SEC, which reviews these documents to ensure adequate disclosure of material information to potential investors.

Created by the Securities Exchange Act of 1934 in response to the 1929 stock market crash, the SEC aims to protect investors, maintain fair and efficient markets, and facilitate capital formation. It requires public companies to submit periodic financial reports prepared according to standardized accounting principles.