Work 1: protect investors
Work 2: Awareness about law.
Work 3: inside trading
Work 4: Approving Industries
Work 5: monitoring business
Quick Pick :
Security and exchange commission protect investors, it gave Awareness about law, works on inside trading, gave approval to Industries and monitor business.
Security and exchange commission are the government agency which they are the one guarantee and secure for investor money. now lets go on purpose of Security and exchange commission works.
Work 1: protect investors
Investor are the main one to stock market, when there is no investor. There is no work for any people’s in stock market, that where SEC protection came.
Security and exchange commission is completely take full responsibility for investor money to protect from any cheating or fraud.
But not from the loss of your invested money. Your responsibility is to invest and protect the money from your own account.
Security and exchange commission are take responsibility for the investor money that invested into a company
without the industry cheating or fraud selling any things.
Security and exchange commission have strong law of regulations on the security market.
Work 2: Awareness about law.
If you take a look on last past crash of 2008 and 1929. There is lot of loss and fear over the market.
Their is millions of investors losses up to billions of dollars. Because of this crash event over the past decades.
The security and exchange commission charge and take severe action towards person who sold continuously billions of dollars.
Such as mutual fund manager, individual big manager and hedge fund manager extra…..
Because of missus the security in the stock market leads lots of people to get pay penalty.
Security and exchange commission (SEC) also work against the insider trading.
Work 3: inside trading
(1) illegal insider trading
Inside trading are the trading which take against the inside the industry or companies without listing or mentioning to SEC.
Doing inside trading is completely illegal, but most people misunderstood the insider trading.
Let’s say your the public company CEO and you know that your industry quarter profits was not big enough.
And your sharing that news to your friends and family without submitting the Quarterly report to the Security and exchange commission.
Which means your sharing non-public information to other people’s.
Once other people’s sell the companies shares without the information available to the public through SEC, which is completely illegal.
Which is called insider trading.
(2) Legal insider trading
But when CEO or any employee of the industry sell the shares without any leak of non- public information
And report their sales or any activity to the SEC Which is also called insider information. But it’s completely legal.
More than any industry who want listing on exchange must have to get approved by security and exchange commission.
Work 4: Approving Industries
Each and every business who want to go public must have to register with security and exchange commission.
SEC have the authority to approve (or) reject the any Companies as their wish.
SEC won’t allow any industry that’s not legit (or) trust worthy (or) good track record.
They follow strict laws and rules to approve the each organization.
So before selling any shares of the company, any business have job to approve my SEC.
The business which are approved my SEC are guarantee for strong protection for every investor.
Once the certain industry registered with SEC, they won’t allow simply for any reason
security and exchange commission (SEC) monitor the business and protect investors until the business in the market Game.
Work 5: monitoring business
Security and exchange commission (SEC) would strongly check the each and every information which are released by the industry are true.
They check how business insider are doing, they gave all legit information or not.
If they find any fool or fake around them, then certain business people’s have strong penalty or go to jail, who are involved in missus the SEC rules and regulations activity.
Note:
Each and every SEC on any country have different laws and rules. Some times new rules number are created (or) take out.
So I have not specify any specific law here. If you want to know the law, section and rules numbers
Check out your own country SEC government website. Where you can find the law section.
But the roles and responsibilities are the same for SEC in each and every country all around the world.
Which we have take a look on 5 purpose of SEC roles and responsibilities on the above content.
The law section number are different, if you want to know it you can refer your lawyer (or) you might also refer on your own SEC country website.
Market rule: #100104
Securities and exchange commission is government agency who works behalf of the government and regulated the whole stock market. They had full authority to create and impacts the market rules so never breaks against it.
If your not comfortable or align to use this content with based on market rules please learn about how to regulate your investments under your control with use of Rule investing.