how the securities and exchange commission sec works
the sec oversees organizations and individuals in the securities markets including securities exchanges brokerage firms dealers registered investment advisors and investment funds through established securities rules and regulations the sec promotes disclosure and sharing of market related information fair dealing and protection against fraud it provides investors access to registration statements periodic financial reports and other securities forms through its electronic data gathering analysis and retrieval database better known as edgar 3the sec was created in 1934 to help restore investor confidence in the wake of the 1929 stock market crash 1the sec is headed by five commissioners appointed by the president one of whom is the chair the commissioners have a five year term but may serve an additional 18 months until a replacement is found present sec chair gary gensler took office in april 2021 4 the law requires that no more than three of the five commissioners come from the same political party to promote nonpartisanship 54the sec consists of five divisions and 23 offices 2 their goals are to interpret and enforce securities laws issue new rules oversee securities institutions and coordinate regulations among different parts of the government the five divisions and their roles are as follows 