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Simple English definitions for legal terms

Securities and Exchange Commission (SEC)

Read a random definition: up-front performance bond

A quick definition of Securities and Exchange Commission (SEC):

The Securities and Exchange Commission (SEC) is a government agency that makes sure companies follow the rules when they sell stocks and other investments. It was created after the Great Depression to prevent bad things from happening in the stock market. The SEC has five leaders who are chosen by the President and approved by the Senate. They have offices all over the country and are divided into different groups that each have their own job. The SEC makes rules to help companies follow the law and punishes them if they don't. They also listen to people's complaints and decide if a company did something wrong.

A more thorough explanation:

The Securities and Exchange Commission (SEC) is a government agency that oversees financial markets, enforces securities laws, and creates new regulations. It was established by Congress in 1934 after the Great Depression to prevent market failures.

The SEC is made up of five commissioners who are appointed by the President and approved by the Senate. No more than three commissioners can be from the same political party to ensure independence. The SEC has headquarters in Washington D.C. and regional offices across the country. It is divided into five main divisions:

  • Division of Corporate Finance
  • Division of Investment Management
  • Division of Enforcement
  • Division of Economic and Risk Analysis
  • Division of Trading and Markets

Each division has a specific focus, such as ensuring investors have accurate information or regulating securities market participants.

The SEC creates and enforces regulations to clarify and supplement securities laws passed by Congress. The SEC rulemaking process involves proposing a rule, gathering public comments, and finalizing the rule. The SEC also serves as an administrative adjudicatory body for certain causes of action, with administrative law judges conducting hearings and issuing initial decisions. The SEC's opinions may be appealed to federal circuit courts of appeal.

One example of an SEC regulation is Rule 10b-5, which creates a private cause of action for securities fraud. This means that individuals can sue for damages if they were defrauded in a securities transaction. Another example is the SEC's gun-jumping rules, which prevent companies from making certain communications before a securities offering is completed.

These examples illustrate how the SEC creates regulations to protect investors and ensure fair and transparent financial markets.

Securities Act of 1933 | Securities Dispute Resolution

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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