the u s securities and exchange commission sec is an independent federal government regulatory agency responsible for protecting investors and maintaining fair and orderly securities markets congress created the sec in 1934 as the first federal regulator of the securities markets the sec s efforts are meant to protect shareholders especially retail investors against fraudulent and manipulative practices in the market and ensure that companies provide accurate and complete disclosures about significant financial events including corporate takeovers it also approves registration statements for bookrunners among underwriting firms 12
securities offered in the u s must be registered with the sec before being sold to investors financial services firms such as broker dealers advisory firms asset managers and their professional representatives must also register with the sec to do business investopedia julie bang