The Securities and Exchange Commission Assignment

The Securities and Exchange Commission - Assignment Example The role of the division of investment management is to regulate investment companies. The SEC protects investors by providing a regulatory framework that oversees the activity of public corporations. The SEC creates laws that are geared towards ensuring public corporations report accurate information in a timely manner. An example of a law enforced by the SEC that raised investor confidence in 21st century after a series of corporate scandals is the Sarbanes-Oxley Act of 2002. The work performed by the SEC enforcement division ensures corrupt companies face penalties for their actions. A fair, orderly, and efficient market means that investors have access to a reliable marketplace that is able to handle all the consumer orders during trading hours. The trading and markets division accomplishes this task by regulating the major securities market participants which includes the brokers, dealers, transfer agents, and self-regulatory organizations. The superb electronic information system of the SEC is essential to run the market in a fair, orderly, and efficient manner. Capital formation occurs when the money saved by the government and the individuals of a society is transferred to the business sector. The SEC is an institution whose objective and mission is to promote capital formation. The SEC promotes capital formation by ensuring corporation disclose all financial information through mechanisms such as the Annual Report. The investigations performed by the SEC help stop illegal activities such as insider trading that are detrimental to