Securities And Exchange Commission
An agency responsible for enforcing securities laws
Real World Example
The Securities and Exchange Commission (SEC) was established in 1934 as part of President Franklin D. Roosevelt's New Deal to restore public confidence in the stock market after the 1929 crash. The SEC's main job was to enforce laws that protect investors and ensure fair and honest markets, responding to the problem of widespread stock market fraud during the Great Depression. This was important because it helped prevent financial disasters and made people feel safer investing their money. Today, the SEC continues to regulate the stock market, ensuring companies provide truthful information to investors. For example, if someone plans to invest in a company like Apple, the SEC ensures Apple provides accurate financial details, which protects the investor from potential scams.
