Kuis SEC: Quiz Ujian Komisi Pengawas Pasar Modal

Study Notes

Securities and Exchange Commission (SEC) Overview

The Securities and Exchange Commission (SEC) is a U.S. federal government agency responsible for regulating securities markets and protecting investors from fraudulent activity. It was established by Congress in 1934 following the stock market crash of 1929 as part of President Franklin D. Roosevelt's New Deal legislation. The SEC operates under the direction of five commissioners appointed by the president with the advice and consent of the Senate; these appointments can last up to five years unless removed due to misconduct.

Key Functions and Responsibilities

The SEC has several key functions aimed at ensuring fairness in the financial system while promoting confidence and capital formation through its regulations:

Registration of companies issuing stocks and bonds so they cannot defraud their customers.
Supervision of brokers and dealers who sell stocks and bonds to protect investors against bad practices.
Inspection of accounting books used by public corporations for accuracy and completeness.

Additionally, it administers certain federal laws covering corporate reporting, business combinations and tender offers involving publicly held domestic and foreign companies.

History and Evolution

Before the Great Depression, there were few regulatory measures governing trading on exchanges like the New York Stock Exchange, leading to widespread fraud and manipulation. In response, the SEC was created to oversee the nation’s securities industry and prevent such abuses from occurring again. Since then, it has evolved significantly to reflect changes in technology and new forms of investment products.

Recent Developments

In recent times, the SEC has been involved in high-profile cases against major Wall Street firms accused of engaging in insider trading and other illicit activities. Its capacity to investigate and prosecute complex financial crimes has gained national attention as well as criticism for being too lenient towards some financial institutions. Despite this controversy, the overall mission remains focused on maintaining a level playing field for all participants in our capital markets.

Description

Learn about the Securities and Exchange Commission (SEC), the U.S. federal agency responsible for regulating securities markets and protecting investors. Explore its key functions, history, evolution, and recent developments.