What is the Securities and Exchange Act?
The act, passed in 1934, created the Securities and Exchange Commission (SEC), a market watchdog. The SEC is part of the federal government and oversees brokerage firms and self-regulatory organizations like the New York Stock Exchange or the National Assocation of Securities Dealers, which runs NASDAQ. The act authorizes the SEC to collect information periodically from companies with publicly traded securities. What’s the significance? The SEC has emerged as a key institution in the wake of the global economic crisis. It has both taken partial blame for the financial meltdown and been charged with investigating some of the most notorious people accused of being behind the problem, including Bernie Madoff, alleged Ponzi scheme mastermind Allen Stanford, and Jon-Paul Rorech and Renato Negrin, formerly a Deutsche Bank Securities bond salesman and a Millennium Partners hedge fund manger respectively, accused by the SEC of insider trading on credit default swaps. The latter marks the SEC’s
The act, passed in 1934, created the Securities and Exchange Commission (SEC), a market watchdog. The SEC is part of the federal government and oversees brokerage firms and self-regulatory organizations like the New York Stock Exchange or the National Assocation of Securities Dealers, which runs NASDAQ. The act authorizes the SEC to collect information periodically from companies with publicly traded securities. What’s the significance? The SEC has emerged as a key institution in the wake of the global economic crisis. It has both taken partial blame for the financial meltdown and been charged with investigating some of the most notorious people accused of being behind the problem, including Bernie Madoff, alleged Ponzi scheme mastermind Allen Stanford, and Jon-Paul Rorech and Renato Negrin, formerly a Deutsche Bank Securities bond salesman and a Millennium Partners hedge fund manger respectively, accused by the SEC of insider trading on credit default swaps. The latter marks the SEC’s
