What's Happening?
The Securities and Exchange Commission (SEC) is empowered by federal securities laws to oversee all aspects of the securities industry. The SEC's mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The agency is composed of up to five commissioners appointed by the President, with the advice and consent of the Senate, ensuring no more than three commissioners can be from the same political party. The SEC's advisory committees provide perspectives, advice, and recommendations to commissioners and staff, supporting the agency's role as the investor's advocate.
Why It's Important?
The SEC's broad authority over the securities industry is essential for maintaining the integrity of the U.S. financial markets. By regulating securities exchanges, brokers, dealers, and investment advisors, the SEC helps protect investors from fraud and ensures transparency in the market. The agency's oversight is crucial for promoting fair trading practices and preventing market manipulation, which can undermine investor confidence and disrupt economic growth. The SEC's regulatory framework supports the stability and growth of the U.S. economy by facilitating capital formation and protecting the interests of long-term investors.
