On the financial market, and especially on the securities market, there has always been the issue of regulation và compliance with the laws và rights of market participants. After all, you can come across many scammers and unscrupulous brokers. To help with issues involving intentional violations of rules & laws, special financial regulators have been created to lớn help ensure security for funds, both brokers & traders. One of the most popular regulators is the US Securities & Exchange Commission (SEC). We talk about this regulator and the scope of its activities.
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Definition of SEC How the SEC works How the SEC works Offenses investigated by the SEC
Definition of SEC
The US Securities & Exchange Commission (SEC) - the main regulatory company in the US securities market, monitors the operation of stochồng exchanges.
How the SEC works
The Securities và Exchange Commission appeared in 1934, a year after the adoption of the Securities Act in the United States. At the time, these measures were taken to lớn support the American economy, which was hit hard by the Great Depression. Nowadays, the main goal of the SEC is to lớn establish the rules for registering securities và monitor their implementation, protect investors' rights and support them. Since brokers quite often provide traders with the opportunity to trade in securities, the need for the presence of such a regulator as the SEC should not be underestimated.
The main objectives of the SEC:• Support for regulated và efficient markets. • Monitoring compliance with federal laws related to the market. • Protection of the rights of investors, including fraudsters. • Monitoring what is happening on the securities market and creating a legal basis for registration. • Assistance in the development of financial markets. • Control over the availability of information provided by companies khổng lồ their investors. • Monitoring corporate acquisitions in the United States. • Monitoring the activities of private regulators and their compliance with legal standards, accounting audits.
The SEC is one of the agencies of the US Federal Government. Since the US financial market is the leading economic market in the world which influences all markets, its regulators are also the subject of attention of traders all over the world. The SEC is one of the four largest regulators of the US financial market.
As a regulator, the SEC has a very wide sphere of influence in the economic sphere, has an independent judiciary which it participates in the most complex legal disputes in the market. Those tools & methods used by the SEC to lớn resolve disputes và conflicts are the standard for international regulators.
SEC controls include:1. Participants in financial markets. This is a significant group, which includes: • Commodity và stoông xã exchanges - NYSE, NYMEX, COMEX, NASDAQ, CME, CBOT, MGEX, BATS Global Markets, ICE, CBOE and many others. • All OTC markets - OTC Bulletin Board OTC, Markets Group & so on. • All hedge funds. • Financial asset management holdings, including the largest, such as JPMorgan Chase. • Issuers issuing securities of all kinds, both lớn stochồng markets and over-the-counter. • Investment banks. • ETF funds, including giants such as iShares and SSGA. • Brokers và market makers. 2. All types of securities & financial instruments. This includes stocks, bills, futures, options, warrants, checks, swaps, deposits, certificates, etc. 3. All types of investors having 5% of the shares of any enterprise. When buying this amount of assets, the investor must be registered in the SEC database. 4. All traders trading on the territory or trading floor of the United States.
Simply put, almost everything that is invested or giao dịch with securities, one way or another, falls under the control of the SEC. To collect applications, the SEC uses a special EDGAR data collection system that works online and where anyone can file a complaint, for example, against an unscrupulous issuer or broker.
The SEC is organized quite simply & efficiently:• Corporate Finance Department - monitors the reporting of issuers of all kinds. • Investment Management Department - regulates both investment funds và investment advisors. • Market trading department - controls the participants in miễn phí trade and self-regulatory market corporations. • Legal department - conducts various types of investigations about violations. • Analytical department - research of risks, market strategies, innovations.
SEC Structure:• 5 SEC members, one of which is the chairman (changes annually). • 24 units that tư vấn 5 main departments. This includes lawyers, auditors, specialists, etc. • 11 regional offices scattered throughout the United States.
There are a number of unlawful actions that can be taken under investigation by the SEC.• Theft of assets. • Intentionally manipulating market prices of assets. • Intentionally providing incorrect information or concealing important information about securities. • Trading in securities of any kind that have not been registered. • Insider trading in securities. • Illegal actions of brokers in relation to lớn customers & systematic violations of the rules.
As you can underst&, thanks to the work of the SEC, the legislative sầu framework in the financial market is maintained & improved which makes investor funds safer.