Responsibilities of Commission

U.S. Securities and Exchange Commission, commonly known as the SEC, is and independent agency of the United States government which first holds responsibility for improving the federal securities laws and regulates the securities industry, the nation's stock and options exchanges, and other electronic securities markets. This institution is very important when it comes to investigating and controlling companies which are not willing to play according the rules.

The commission was established during the Great depression as a result of the stock exchange crash in 1929. The main reason for the creation of the commission was to regulate the stock market and prevent corporate abuses connected to the offering and sale of securities. The commission gained the power to license and regulate stock exchanges, the companies whose securities were traded on them, and the brokers and dealers who initiated the trading.

Although the commission was founded, many companies, who went public and whose securities were traded since the Great depression, tried to break the rules and committed numerous kinds of frauds and scams. Most of these companies were big players, such as oil companies and different financial institutions, affecting the national economy results and therefore contributing to its instability. 

Currently, the commission is responsible for controlling seven major laws related to the securities industry. The commission is also allowed to initiate civil enforcement actions against individuals or companies that might have committed accounting fraud, provided wrong information or engaged in insider trading or other violations of the law such as the case of Gulf coast western scam. In addition, the commission works really close with criminal law enforcement agencies to ensue individuals and companies for any criminal violations.