Securities And Exchange Commission - SEC


DEFINITION of 'Securities And Exchange Commission - SEC'

A government commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S. The SEC is composed of five commissioners appointed by the U.S. President and approved by the Senate. The statutes administered by the SEC are designed to promote full public disclosure and to protect the investing public against fraudulent and manipulative practices in the securities markets. Generally, most issues of securities offered in interstate commerce, through the mail or on the internet must be registered with the SEC.


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BREAKING DOWN 'Securities And Exchange Commission - SEC'

Here's an example of an activity that falls within the SEC's domain: if someone purchases more than 5% of a company's equity, he or she must report to the SEC within 10 days of the purchase because of the takeover threats it may cause.

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  9. What are some good online resources for me to learn about Generally Accepted Accounting ...

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  11. What are the pros and cons of holding a non-controlling interest in a company?

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  16. How can a company buy back shares to fend off a hostile takeover?

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  17. How does an underwriter syndicate work together on an initial public offering (IPO)?

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  18. How often should I measure my company's key performance metrics (KPIs)?

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  19. What sectors are best for an investor seeking a high annual return?

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  20. If I write a blog post about stocks I own, is that considered insider trading?

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  21. How is reconciliation treated under generally accepted accounting principles (GAAP)?

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  22. How are asset management firms regulated?

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  23. How is the Chairman of the Securities and Exchange Commission (SEC) chosen?

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  32. What are the differences between a 10-K report and a firm's own annual report?

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