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• The U.S. Securities and Exchange Commission (SEC) is a federal government agency empowered by Congress to enforce securities laws and regulate the securities industry. The agency oversees securities markets, like the New York Stock Exchange and NASDAQ.

  In 2009 the SEC came under close scrutiny because of the ponzi scheme of Bernard Madoff. During the investigation of his scheme it was revealed that the SEC had previously conducted two investigations into his business practices, but failed to uncover the $50 billion plot. Despite a direct tip off from an individual close to the Madoff scheme, SEC regulators defended their actions saying that during their investigations they found no evidence of foul play.Reuters: Regulators defend actions... (January 27, 2009)

• Fast Facts

  1. Created by the Securities Exchange Act of 1934
  2. Part of The New Deal
  3. Composed of 5 commissioners
  4. Headquarters: Washington, DC
  5. Chairman: Christopher Cox
  6. Employees: 3,371
  7. Forces companies to disclose financial information to investors
  8. Maintains financial information through its EDGAR database

• Securities Fraud

  Securities fraud was among the many concerns following the Stock Market Crash of 1929. Securities fraud occurs when information is manipulated for the purpose of influencing purchasing decisions within securities markets. The SEC was formed with the intention of increasing public confidence, by enforcing uniform disclosure of public securities offerings.

• Related Pages on Mahalo

  Christopher Cox | The New Deal | Washington, DC | Short Selling Ban | Bernard Madoff | Ponzi Scheme | Shana Madoff | Eric Swanson | Mary Schapiro | Bruce Karatz | Frank Lowy | George Theodule | Ramesh Chakrapani | Arthur Nadel | How to Read the Stock Market | How to Buy Stocks | Meaghan Cheung | How to Buy Stocks Without a Broker | Danny Pang

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