What is the role of the SEC?

So, the SEC has three roles: The first is to protect the investing public. The second is to help maintain fair, efficient and orderly markets. And the third is to facilitate capital formation.

Why was the SEC created?

So, for that you kind of have to go back in history, back in time to the Great Depression. It was created then to restore public confidence. And to help establish some baseline public disclosure standards, standard dealing practices. Congress had passed the Securities Act in 1933 and then the Securities Exchange Act in 1934. The SEC was created under the 1934 Act in order to enforce the securities laws that were being passed.

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