The Securities and Exchange Commission (SEC) is a federal agency in the United States that oversees and regulates the securities industry, including stock exchanges, brokerage firms, and investment advisors. Established by the Securities Exchange Act of 1934, the SEC's primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC enforces securities laws, including those requiring public companies to disclose financial and other significant information to the public, thus ensuring transparency and fairness. It also oversees the registration of securities, investigates and prosecutes securities fraud, and enforces regulations that govern market participants. By maintaining stringent regulatory standards and monitoring compliance, the SEC aims to foster investor confidence and stability in the financial markets.
