The Security and Exchange Commission (SEC) has everything to do with money. When the stock market crashed in 1929 the government realized that they needed to do something to regulate the stock market. The answer was the SEC. They were formed in 1934 to help protect the people that invest in the market. According to the SEC website, “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

Protect Investors

The SEC protects all different kinds of investors. From the investor who is playing around in the market, to the investor who is making a last effort at a good retirement. All investors are taken into consideration with the SEC. They pass laws that can limit the shares that an investor can invest in, as well as the amounts that can be fined to those who do not follow the rules.

Unlike banking where your deposits are insured by the federal government, investments that you make in the marketplace are not insured. This means that the SEC has to take steps to ensure that everything that you do is legal and does nothing to take an advantage away from another.

The SEC has developed laws that prohibit such acts as insider trading, account fraud, and leaking false information or misconceptions about a company for your benefit. Insider trading is a serious offense for anyone knowingly committing it. It is where someone who has inside information about a company leaks that information or uses that information for their own financial gain. The person with the information may unknowingly pass on information to someone who can use the information for their own benefit. The insider is not in violation of the law, only the person who used the information. If the insider knowingly passed the information then that is when they would be subject to fines and possibly jail time.

If you have questions on any trade laws the SEC is a great reference to use. You can go to their website and find information on past laws and current laws. The SEC is constantly looking for ways to better trade. They will do whatever they need to in order to protect investors and keep things fair for everyone involved.

Recent Entries

• The debt settlement process : An easy guide for the debtors
• Unsecured Credit Cards For Bad Credit: Is It Ideal For You?
• How to Approach Credit Card Applications through Online?
• Why Comparison Among Various Credit Cards Is Important?
• Kids Bank Account
• Understanding the Reasons for the Use of Money
• Credit Card Offers For You
• Benefit of Whole Life Insurance
• Ways To Do Credit Card Balance Transfer
• Know About Businesses Which Require Little Investment