Securities and Exchange Commission

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The Securities and Exchange Commission (SEC) is the U.S. Government commission charged with the responsibility of ensuring compliance with its securities act. Through the use of its own financial professionals, which includes qualified stockbrokers, the SEC monitors trading and the markets through the computerized networks for strange and/or unusual trading activity, for example. These professionals would then further investigate to uncover illegal activity such as insider trading (trading with prior or nonpublic information). To eliminate conflict of interests, SEC financial professionals do not engage in professional trading activity themselves , but work for and are compensated exclusively by the U.S. Government.

Plain English

The Securities and Exchange Commission (SEC) acts as the stock market police. The SEC makes sure everyone is following the stock laws, or securities acts, passed by the U.S. Government.

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