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Securities and Exchange Commission

The U.S. federal agency responsible for regulating securities markets and protecting investors.

Securities and Exchange Commission (SEC)

The SEC is the primary regulator of U.S. securities markets, established in 1934 in the aftermath of the 1929 stock market crash.

Core mission

  1. Protect investors: Ensure fair, honest markets
  2. Maintain fair markets: Prevent fraud and manipulation
  3. Facilitate capital formation: Help companies raise money efficiently

What the SEC regulates

  • Stock exchanges (NYSE, Nasdaq)
  • Broker-dealers and investment advisors
  • Mutual funds and ETFs
  • Corporate disclosures (10-K, 10-Q, 8-K filings)
  • Insider trading and market manipulation

Key filings investors should know

  • 10-K: Annual comprehensive report
  • 10-Q: Quarterly financial update
  • 8-K: Material event disclosure
  • 13-F: Quarterly holdings disclosure by institutional investors
  • Schedule 13D: Disclosure when someone acquires 5%+ of a company

EDGAR

The SEC's Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) provides free access to all public company filings at sec.gov.

Key Takeaways

  • Context matters when interpreting any financial metric.
  • Combine multiple data points for informed decisions.
  • Continue learning to build investment knowledge.