Securities Exchange Commission
Stock Market History
The role of the Securities Exchange Commission in
stock market history.
The history of SEC regulation and safe investing.
The SEC's official title is the U.S. Securities and Exchange Commission. The agency is more commonly referred to as the Securities Exchange Commision because this is what the letters SEC stand for.
SEC History
After the Great Depression
stock market crash of 1929,
Congress passed the Securities Act of 1933. The following year the Securities Exchange Act of 1934, which created the SEC, was signed into law.America was still suffering the pangs of a deep depression. The NY stock market had collapsed so horrendously because investors had lost confidence in publicly traded companies. Prior to the passage of the aforementioned laws, the was no government regulation of securities trading. The NY Stock Exchange had instituted a strict set of rules pertaining to the companies it listed but that was about it. The Securities Exchange Commission was created to restore investor confidence in America's capital markets so that people would feel it was safe to make stock market investments again.
How the Securites and Exchange Commission Works
The 5 Commissioners of the Securities Exchange Commission are appointed by the President. Each Commissioner serves a 5 year term. One is appointed, by the President, as Chairman of the Commission.The first Chairman (appointed by Franklin Delano Roosevelt) was Joseph P. Kennedy (JFK's father). No more than 3 Commissioners may belong to the same political party. The Securities Exchange Commission contains 5 divisions: - The Division of Corporation Finance which oversees corporate disclosure of pertinent company information to investors.
- The Division of Trading and Markets which works to maintain the orderly and efficient functioning of U.S. markets. This division oversees the exchanges, brokerage firms and other market participants including FInRA and clearing agencies that facilitate trade settlement.
- The Division of Investment Management oversees the investment management industry. Mutual funds, ETFs, stock market analysts and investment advisers fall under this divisions purview.
- The Division of Enforcement makes recommendations to the Commission with regard to investigating securities law violations. This division also prosecutes persons or agencies found to be in violation on behalf of the Commission.
- The Division of Risk, Strategy, and Financial Innovation is the newest addition. It was established in 2009 for the purpose of identifying developing risks in the capital markets.
The Securities and Exchange Commission employs about 3,500 people and maintains 16 offices in Washington, D.C. as well as 11 regional offices throughout the continental U.S.
Securities and Exchange Commission Address
SEC Headquarters
100 F Street, NE
Washington, DC 20549
(202) 942-8088
SEC Regulation
The purpose of SEC regulation is to insure that publicly traded companies "tell the public the truth about their businesses, the securities they are selling, and the risks involved in investing." and to insure that stock brokers, market makers and exchanges treat investors fairly, deal with them honestly and put their interests first.This is what the
SEC website
says. I have no desire to contradict a government agency but Homemade Money Guide's mission is to help you make and not lose money so I feel obligated to say this: Despite the SEC's well-intentioned efforts to the contrary, the CEOs of publicly traded companies do not always tell investors the truth. I don't know if you were trading during
the stock market crash of 2007-2009
but I was. The CEOs of several major U.S. banks lied deliberately and repeatedly to investors for more than a year. They were caught at this. Congress held hearings and spoke very harshly to them. But I don't recall anyone being carted off to jail. As far as market makers, stock brokers and exchanges are concerned, I've never had a problem with my discount stock broker or with any of the major exchanges.I've not had many problems with market makers but I do what I can to protect myself from their machinations. I suggest you do likewise.
Stock Market History Graph
This stock market history graph is a 100 year chart of the Dow. The 25 year moving average included on this chart will help investors in making predictions of future market performance.
NASDAQ History
NASDAQ history. The NASDAQ acronym stands for National Association of Securities Dealers Automated Quotation. The history of NASDAQ trading begins with the formation of the online stock exchange in 1971.
NYSE History
NYSE history. History of the NYSE. New York Stock Exchange Inc. volume information. NYSE group and Euronext.
Go from Securities Exchange Commission to Stock Market for Beginners
Stock market basics covered rules 1-4. Stock Market For Beginners continues with rules 5-8. This is not a complete education but offers stock market trading tips to help you lean how to trade stock.
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