What is the securities and exchange commision

Securities and Exchange Commission (SEC) is a federal government agency that protects investors.

Explanation:

The Security and Exchange commission was formed by the Congress to protect the investors. It is a government organization which protects investors from fraud and malpractices. Hence SEC has made it mandatory that be it a broker, asset manager or even investment firms they should be registered under the Security and Exchange Commission.

The SEC has specified rules and regulations which should be followed by the investors. Periodically the share market information, financial reports are shared to the customers. It is also with the Justice department where in case of any criminal reports they take action.