Securities and Exchange Commission (SEC)

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The agency in the USA that oversees securities exchanges, brokers and dealers, investment advisors and mutual funds in an effort to promote fair dealing, disclosure of important market information, and fraud prevention.

Congress created the SEC through the Securities and Exchange Act of 1934 to oversee the proper functioning of primary and secondary financial markets, with an emphasis on the protection of security holder rights and the prevention of corporate fraud.

Among its various powers, the SEC has the authority to regulate securities exchanges (such as the New York Stock Exchange, the NASDAQ, and the Chicago Mercantile Exchange), bring civil enforcement actions against companies or executives who violate securities laws (through false disclosures, insider trading, or fraud), ensure the quality of accounting standards and financial reporting, and oversee the proxy solicitation and annual voting process.

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USA Gov Securities and Exchange Commission