Chapter 7
General Firm, Branch, and Individual Registration Procedures
The SEC was created by the Securities Exchange Act of 1934. It’s the primary regulator of the securities industry in the United States. 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 goal is a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. The result of this information flow is a more active, efficient, and transparent capital market that facilitates the capital formation so important to our nation’s economy.
The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisers, and mutual f