How Does The Securities And Exchange Commission Work?

Do you know what the Securities and Exchange Commission does?

This federal agency oversees thousands of companies and transactions all the time. So how do they do it?

I created this infographic to show how the SEC works, where it came from and how it protects you, the investor. We’ll look at each branch of the SEC and its specific role in enforcing securities and trading laws.

Do you know how does the securities and exchange commission work? Then check out this PDF.

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How does the Securities and Exchange Commission work?How does the Securities and Exchange Commission work?Timothy Sykes


The SEC protects investors and seeks to ensure fairness in the market. This federal commission was created out of necessity to restore public confidence in the market. Through its five divisions registers and maintains filings on companies selling securities and advising investors. When corporations or individuals violate securities and trading laws, it is the responsibility of the SEC to prosecute and enforce fairness in the market.

Without the SEC, it would be the wild west out there. With complex securities, volatile markets and investment advice coming from many sources, it’s valuable to understand how the SEC works.