SEC stands for the U.S. Securities and Exchange Commission.
The U.S. Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining the fair and orderly operation of the securities market, and promoting capital formation.
The U.S. Securities and Exchange Commission was established in 1934 to enforce U.S. laws governing the trading of securities (financial assets), maintain fair and efficient markets, ensure investors are protected from abuse, and help maintain a well-functioning economy.
The U.S. Securities and Exchange Commission (SEC) was established by the passage of the U.S. Securities Act of 1933 and the Securities Exchange Act of 1934, primarily in response to the 1929 stock market crash that led to the Great Depression.
To help support investor education, the SEC makes a wealth of educational information available to the public on its website, which also includes the EDGAR database of disclosures that public companies must file with the Commission.
While the SEC is the primary overseer and regulator of the U.S. securities markets, it works closely with many other agencies, including Congress, other federal departments and agencies, self-regulatory organizations (such as stock exchanges), state securities regulators institutions as well as various private sector organizations.
In addition, the SEC Chairman represents the agency as a member of the Financial Stability Oversight Council (FSOC).
The SEC is composed of a five-member commission, with each member serving a five-year term.
The five commissioners are appointed by the President, one of whom is designated as Chairman.
Each commissioner serves a five-year term, but they can serve an additional 18 months before a replacement is found.
To promote nonpartisanship, the law requires that no more than three of the five commissioners be from the same political party.
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