The Securities and Exchange Commission (SEC) is an independent agency of the U.S. federal government with a three-pronged mission: protecting investors, maintaining fair and efficient markets, and facilitating capital formation.  

They protect investors by requiring companies to register their securities with the SEC before offering them to the public. This registration process mandates the disclosure of crucial financial and business information, allowing investors to make informed investment decisions. They set rules and regulations and monitor market activity to maintain fair and orderly markets.  

They enforce securities laws to deter fraudulent activities and protect investor interests by investigating potential violations and taking action against companies and individuals who break the law.  

To facilitate capital formation, the SEC streamlines the registration process and guides companies in the capital raising process.  

The SEC played a major role in implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act to reduce risky financial activities, protect consumers and investors, and increase transparency in the financial system by issuing rules, regulations, reports, and enforcement actions.