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U.S. Securities and Exchange Commission - the S.E.C. The U.S. Securities and Exchange Commission SEC is an agency of the U.S. Government. The SEC administers the Securities Act of 1933, the Securities Exchange Act of 1934, and other legislation concerning the sale and trading of securities. The primary mission of the SEC is to protect investors and maintain the integrity of the securities markets. SEC rules require that all investors have access to certain basic facts about an investment. The SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge if a company's securities are a good investment. (It also provides useful information to trade creditors considering whether or not to extend credit to a particular company). The SEC protects investors and the public by requiring full disclosure of financial information by companies offering securities for sale. Companies publicly offering securities for sale must tell the public the truth about their businesses, the securities they are selling, and the risks involved in investing. SEC rules prohibit misrepresentation, deceit or other fraud in the sale of securities. The legislation creating the SEC made it a requirement that publicly traded companies comply with what is now called GAAP accounting rules. Publicly traded companies are required to report financial results quarterly, and report special events more quickly Documents that publicly held companies are required to file with the SEC include:
Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore. |
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