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Securities and Exchange Commission

United States government agency
Also known as: SEC
Written and fact-checked byThe Editors of Encyclopaedia Britannica
The Editors of Encyclopaedia Britannica
Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.
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Securities and Exchange Commission
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Securities and Exchange Commission headquarters, Washington, D.C.
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Securities and Exchange Commission (SEC), U.S. regulatory commission established by Congress in 1934 after the Senate Committee on Banking and Currency investigated the New York Stock Exchange’s operations. The commission’s purpose was to restore investor confidence by ending misleading sales practices and stock manipulations that led to the collapse of the stock market in 1929. It prohibited the buying of stock without adequate funds to pay for it, provided for the registration and supervision of securities markets and stockbrokers, established rules for solicitation of proxies, and prevented unfair use of nonpublic information in stock trading. It also stipulated that a company offering securities make full public disclosure of all relevant information. The commission acts as adviser to the court in corporate bankruptcy cases.

This article was most recently revised and updated by Amy Tikkanen.