SEC is the acronym Securities and Exchange Commission. The SEC was created by Congress in 1934 to help protect investors and regulate the securities market. Five commissioners, each serving a five-year term, which are appointed by the president and approved by Congress make up the Securities and Exchange Commission.
The SEC administers certain statutes: the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities Act Amendments of 1975, the Trust Indenture Act, the Investment Company Act, the Investment Advisers Act and the Public Utility Holding Company Act. The purpose is to protect investors from fraudulent/manipulative practices and to promote full disclosure.« Back to Glossary Index