Compensation Glossary

Securities and Exchange Commission (SEC)

The SEC is the principal federal regulatory agency which regulates the securities industry. The main function of the SEC is to promote full disclosure and exists to protect investors, in the securities market, against practices that are fraudulent or manipulative. The SEC enforces several acts, including but not limited to the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940 and the Investment Advisers Act.