Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is a federal agency that administers and enforces U.S. federal securities laws. The SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

For example, the SEC requires publicly traded companies to disclose important financial information to the public on a regular basis. This includes annual and quarterly reports, as well as periodic updates on changes in the company’s financial position.

The SEC also regulates the sale of securities, such as stocks, bonds, and derivatives. It maintains rules for market participants such as brokers, traders, and other financial professionals. It also sets limits on the amount of leverage that investors can use to purchase securities.