Securities And Exchange Commission

The Securities and Exchange Commission was formed in the year 1934 as the first non-partisan, quasi-judicial agency designed to regulate the transactions that happen on the stock market and make sure that those that are in power in certain brokerages and companies are no abusing their position and committing crimes against members of the public that have invested their money in their operations. Formed in the years following the Great Depression, the SEC was a signal to the United States citizens that the government was personally invested in preventing further fraud in its markets.

Although it is not the way the market was intended to be used, more and more uninformed investors are looking to ventures in the stock market as the way that they will provide for their retirement, their children's college education, and the vacation home that they've always wanted. The government realizes that the average American investor is counting on the fact that the market will operate in ways that are ethical and honest. That's why it set up the Securities and Exchange Commission to make sure that companies that are trading on the exchanges, along with the banks and brokers that facilitate the trading are complying with all laws pertaining to trade.

This means that the Securities and Exchange Commission enforces the laws that simply stipulate that companies and brokers must be completely transparent with the people that have invested and that are thinking about investing in the market. The Commission is set up to investigate suspicion of price or quote manipulation, insider trading, and emerging companies that seek capital without a proven business plan. Learn more about how to protect your investments at www.tcc5.com.