What does the SEC do?
The SEC’s primary function is the gathering and dissemination of important financial information about public companies. It also oversees activity in the securities industry at large, monitoring such things as corporate takeovers, the stock exchange, investment brokers and advisors, and public utility companies, as well as investigating infractions like insider trading and fraud. What kind of information is disclosed to the SEC? Companies file information about their financial status and about their business practices with the SEC. The documents that must be filed include annual and quarterly financial reports and details of any mergers and acquisitions in which a company is involved. Companies are required to file all pertinent information with the SEC, whether positive or negative. How does the SEC gather and disseminate this info? Most companies file almost all of the required information with the SEC electronically, through the Electronic Data Gathering, Analysis and Retrieval syst
The Securities and Exchange Commission was established by Congress in 1934 to protect investors against misrepresentation and fraud in the issuance and sale of securities. The SEC does this by enforcing the securities laws. These laws require most companies offering their securities for sale in interstate commerce to register them with the Commission so that full disclosure of certain information is made to investors. They also prohibit misrepresentation, deceit and other fraudulent acts and practices in connection with the purchase or sale of securities generally (whether or not required to be registered). ARE ALL SECURITIES REGISTERED WITH THE SEC? Not all securities are required to be registered with the SEC, but many are. Sellers of registered securities are required to furnish prospective investors with a prospectus (selling circular), divulging financial information. However, the SEC does not pass on the accuracy of the prospectus or approve or disapprove securities offered. Any
The SEC is a government agency that was formed after the stock market crash in 1929. They are basically the policemen of the stock market. They have prosecutorial powers and the civil authority to sue persons and institutions (but not to inflict punishment). They also monitor company info for truth and accuracy and promote financial education. For more information visit the SEC website. Why Invest? Money Grows For a comfortable retirement: Commissioner Atkins mentioned the bleak future for Social Security and that it will not be much, if anything, by the time most of the audience are eligible to receive it (most were between ages 25-45), and our children may not even have it. Education costs Family costs For a rainy day Make your money work for you It makes the economy work by creating jobs and helping companies grow (Here he showed a movie clip featuring Gordon Gecko’s ‘Greed is Good‘ speech from the movie Wall Street). Where to Begin? Start today: Never too late, too little Determine
