The stock market is a lucrative way for companies to raise capital. Big companies can sell shares of their stock to the public, on the stock market. In which case, any person who owns a share or shares are they company is a shareholder. Control of the company may still be delegated unto a very few individuals, the company’s board members usually. As usual there is risk of mismanagement and poor performance. The SEC is a government agency regulates a company trades on Wall Street.
May 27th 1933 Franklin Delano Roosevelt sign the Securities Act of 1933. “Complete and truthful disclosures ”, the truth in Securities Act. The SEC is an independent federal agency, established pursuant to the Securities Exchange Act of 1934, headed by a 5 member commission. The commissioners are appointed by the president and confirmed by the Senate. The purpose of the ACC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
It is important for any investor to be fully informed before purchasing a stock. The SEC is responsible for enforcing policy that opposes transparency in the markets. Some key functions of the SEC include regulation and securities markets, enforcement of securities law, registration and disclosure, investor protections, oversight of investment professionals, rulemaking.
The SEC’s regulation can be a very helpful resource for capital formation. Public and private that offer or obtain securities are regulated under the Securities Act. Whether you are a novice investor or an experienced one, understanding the SEC’s educational resources can enhance your financial literacy. The SEC provides information and resources to help investors understand various investment products, risk, and market dynamics.
The stock market is a lucrative way for companies to raise capital. Big companies can sell shares of their stock to the public, on the stock market. In which case, any person who owns a share or shares are they company is a shareholder. Control of the company may still be delegated unto a very few individuals, the company’s board members usually. As usual there is risk of mismanagement and poor performance. The SEC is a government agency regulates a company trades on Wall Street.