United States Securities and Exchange Commission – Part-2

By | April 13, 2009

The United States Securities and Exchange Commission (SEC) is a United States government agency having primary responsibility for enforcing the federal securities laws and regulating the securities industry/stock market. The SEC was created by section 4 of the Securities Exchange Act of 1934 (now codified as 15 U.S.C. § 78d and commonly referred to as the 1934 Act). In addition to the 1934 Act that created it, the SEC enforces the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes-Oxley Act of 2002 and other statutes.

Christopher Cox is the present chairman of the SEC. To President George He was appointed by President George W. Bush. President Franklin Delano Roosevelt appointed Joseph P. Kennedy, Sr., father of President John F. Kennedy, to serve as the first Chairman of the SEC. For a full list of SEC chairs and commissioners, see: Securities and Exchange Commission appointees. he sees: Assigned people of the Commission of securities and interchange. The SEC was established by the congress of the United States in 1934 like an independent one, an independent one, years of following quasi-judicial of the regulating agency near the excessive production caused depression of merchandise, the introduction of the consumer credit, and the great collapse of 1929. The main reason of the creation of the SEC was to regulate stock-market and to prevent corporative abuses referring the offer and the sale with securities and the corporative spreading. The SEC was given the energy to license and of regulating stock markets. At the moment, the SEC is responsible to administer six important laws that they govern the industry of securities. They are: the act of the 1933 securities, the act of interchange of 1934 securities, the act of the contract of 1939 confidence, the act of company of 1940 investment, the act of the advisors of investment of 1940 and, more recently possible one, the Sarbanes-Oxley Act of 2002.

The enforcement authority given by Congress allows the SEC to bring civil enforcement actions against individuals or companies found to have committed accounting fraud, provided false information, or engaged in insider trading or other violations of the securities law. The SEC also works with the agencies of the application of the penal right to also process individuals and to companies for the offenses that include a criminal violation. In order to reach their mandate, the SEC makes fulfill the requirement statutory that the public companies put under quarterly and annual information, as well as other periodic reports. In addition to annual financial information, the executives of the company must provide a narrative account, call the “discussion and analysis of the management” (MDA) that outlines the previous year of operations and explains how the company went in that period. The management generally also will touch in the next year, skirting the future goals and approaches to the new projects. In an attempt to make level the field that plays for all the investors, the SEC maintains a data base in line in line called EDGAR of what investors can have access to this and to the other information filed with the agency.