The U.S. Securities and Exchange Commission

Only available on StudyMode
  • Download(s) : 434
  • Published : December 13, 2010
Open Document
Text Preview
The U.S. Securities and Exchange Commission
In economic society, most people like to invest their fortunes in the capital market and security market. As more and more investors join in the investing market which is very complex and fascinating, and it can be successful. Unlike the deposits are hypothecated by the federal government, stocks, bonds and other securities can lose value in capital market because their no surety. So the security and exchange commission play an important role in the capital market, and the important thing is the security and exchange commission demands the public companies should be disclose the meaningful financial and other information to the public. This provides an equitable environment and common knowledge for the investors who can make a decision for buy, sell or hold a security. The security and exchange commission supervises the key participants in the securities market, which contains securities brokers and dealers, securities exchanges, investment advisors, and mutual funds. The security and exchange commission is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud. Every year, the security and exchange commission works closely with other institutions, such as Congress, other federal departments and agencies, the self-regulatory organizations, state securities regulators, and various private sector organizations. The other thing is the security and exchange commission use the securities laws to deal with civil enforcement actions against individuals and companies which has typical infractions. The responsibility of the U.S. security and exchange commission is to protect the investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. This article is an overview of the Securities and Exchange Commission history, role of the division of different offices, how the Securities and Exchange Commission maintains market, and how Securities and Exchange Commission facilitates capital formation. (a)When, Why, and by What Authority the SEC was Formed

The Securities and Exchange Commission was found in a special period and has a meaningful history. The mission of the Securities and Exchange Commission is to protect investors and make the market stability. Before the Great Crash of 1929, fewness people support the federal regulation of the securities markets. After the post-World War I, the security activities increased faster, and the federal government required financial must prevent the fraudulent sale of stock and financial disclosed. During the 1920s, most investors found the advantage of the post-war prosperity, so they invested their money into stock market. When the Great Crash was occurred in 1929, investors lost their confidence for the markets plummeted. At the same time, banks who lent money to the investors lost much money ensuring Great Depression. In this background, there was a common sense to recover confidence of the investors for the stock market, so Congress held hearings to identify the problems and search for solutions. According the result of the hearing, Congress passed the Securities Act of 1933 during the Depression year. The Securities and Exchange Commission was created base on this law and the Securities Exchange Act of 1934. The purpose was to restore the confidence of the investors in capital market and clear rules of honest dealing. Congress established the Securities and Exchange Commission in 1934, and implemented the newly-passed securities laws to promoted the capital and protect the investors. The important thing were monitored the securities industry, required companies should be offered securities for investment dollars, must told the public the truth about their businesses, the securities they were selling, and the risks involved in investing. (b)The Role of the Division of Corporation Finance

The role of the division corporation...
tracking img