10.1.  Regulatory Entities

The Securities and Exchange Commission, abbreviated the SEC, is the primary regulator of the securities industry in the United States. Recall that it was established by the Securities Exchange Act of 1934 (the “Exchange Act”). The mission of this federal agency is to:

• • Protect investors
• • Maintain fair, orderly, and efficient markets
• • Facilitate capital formation

The SEC requires public companies to disclose financial and other information to the public. The SEC requires this so that investors can rely on a common body of knowledge to determine whether to buy, sell, or hold a particular security. The result is a more active, efficient, and transparent capital market.

The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisers