Glossary · Defined term
SEC
The SEC is the U.S. federal agency that regulates securities markets and enforces disclosure rules. Definition, what it does, and related terms.
Last updated Oct 2, 2026
What it means
The U.S. Securities and Exchange Commission is the federal agency that regulates securities markets and enforces disclosure rules. Created in 1934 after the 1929 crash, it requires public companies to file reports like the 10-K and 10-Q, polices fraud and insider trading, and oversees exchanges, brokers, and investment advisers. Companies submit filings through its EDGAR database, which is free and open to the public. The SEC does not judge whether an investment is good or bad; its mission is to ensure investors get accurate information and markets operate fairly. Its enforcement actions can include fines, bans, and criminal referrals.
An example
For illustration, when a public company announces quarterly results, the detailed numbers appear in filings on EDGAR that anyone can read for free. If executives lied in those filings, the SEC can bring enforcement action against them. The agency's role is disclosure and fairness, not picking winners.