Securities and Exchange Commission

The Securities and Exchange Commission (SEC) protects investors, maintains fair and efficient markets, and facilitates capital formation under federal securities laws.[3] Founded in 1934 during the Great Depression, the SEC has grown into the primary regulator of the U.S. securities industry, overseeing everything from stock exchanges and brokers to investment advisers and publicly traded companies.[2] The agency’s three-part mission—protecting investors, maintaining orderly markets, and enabling companies to raise capital—shapes how American capital markets operate and how millions of people invest for their futures.

Protecting Investors from Fraud and Misconduct

At its core, the SEC enforces a straightforward principle: companies must tell the truth about their business and the risks involved in their securities, while brokers and investment advisers must treat investors fairly and honestly.[5] The agency investigates potential violations of federal securities laws, holds wrongdoers accountable through administrative proceedings and civil suits, and works to deter future misconduct.[1] The SEC’s enforcement efforts span from detecting suspicious market activity that signals potential manipulation to preventing Wall Street fraud schemes. By requiring public companies, fund managers, and investment professionals to disclose financial information regularly and completely, the SEC empowers investors to make informed decisions.[7]

Overseeing Markets and Companies

The SEC oversees securities exchanges, brokers, dealers, and investment advisers, working to maintain fair, orderly, and efficient trading.[4] The agency reviews corporate financial filings and disclosure documents, monitors market infrastructure, and regulates participants to prevent fraud and insider trading.[1] Beyond day-to-day oversight, the SEC also grapples with policy debates about how financial markets should operate and what companies should disclose to maintain investor confidence and market integrity.

Facilitating Growth and Capital Formation

The SEC recognizes that access to capital is essential for business growth and job creation.[3] By providing clear, fair rules for how companies can raise money through the securities markets, the agency helps entrepreneurs and businesses fund their operations and innovations while maintaining investor protections and market efficiency.