Attorney Laura Anthony Clarifies the Security and Exchange Commission's Formation, Function and Purpose

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Feb 06, 2017, 04:00 ET

WEST PALM BEACH, Florida, February 6, 2017 /PRNewswire/ --

On October 29, 1929, Black Tuesday blindsided Wall Street and the Roaring 20's came to a screeching halt. Investors lost billions of dollars in a single day; America and the rest of industrialized civilization slid into an economic depression that would last a decade.

The stock market would inevitably continue, but it had become devastatingly apparent that sweeping guidelines would need to be implemented in order to mitigate such future occurrences. Out of the chaos rose the Securities and Exchange Commission, more commonly known as the SEC.

The Purpose of the SEC

The mission of the SEC is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation. Although each mission should be a priority, the reality is that the focus of the SEC changes based on its chair and commissioners and political pressure. Former Chair Mary Jo White viewed the SEC enforcement division and the task of investor protection as the agency's top priority. Jay Clayton's background and pro-business predisposition will likely create a focus more intent on capital formation.

In addition to regulating and overseeing the processes involved in capital formation such as registrations and exceptions, the SEC regulates the market participants themselves, including securities exchanges, brokers and dealers, investment advisors, investment companies, issuers and investors, and civilly enforces the law as to each of these participants. In terms of securities exchanges, brokers and dealers and investment advisors, the SEC is primarily concerned with disclosure, fair dealing and protecting against fraud. The SEC brings hundreds of enforcement proceedings each year as a result of suspected violations of numerous and greatly diverse rules.

Read the full story here in The Huffington Post.

Further information on this and many other corporate finance topics can be found at LawCast.com.

Lawcast Definition

law·cast

Noun

Lawcast is a derived from the term podcast and specifically refers to a series of news segments that explain the technical aspects of corporate finance and securities law. The accepted interpretation of lawcast is most commonly used when referring to LawCast.com, the securities law network. Example: "LawCast expounds on NASDAQ listing requirements."

The Author:

Securities attorney Laura Anthony and her experienced legal team provide ongoing corporate counsel to small and mid-size OTC and exchange traded issuers as well as private companies going public on the over-the-counter market, such as the OTCQB and OTCQX or an exchange such as NASDAQ or NYSE MKT. Legal & Compliance, LLC is a comprehensive corporate, securities and business transactions law firm assisting clients in all aspects of commerce, including initial public offerings, reverse mergers, registered public offerings, exempt private offerings, all forms of complex corporate finance transactions, compliance with national exchanges such as the NASDAQ and NYSE MKT and the over-the-counter market trading platforms such as OTCQB and OTCQX, compliance with FINRA and DTC, strategic planning for unique management and ownership issues, and broad-scope legal services. Laura Anthony, Esq. is an approved OTCQX Advisor (DAD/PAL). Laura Anthony, Esq., is also a contributing blogger to The Huffington Post the creator and author of SecuritiesLawBlog.com, ABA Journal's Top Blawg 100, and the producer and host of LawCast.com, The Securities Law Network. Attorney Laura Anthony is recognized by Martindale-Hubbel as one of America's Most Honored Professionals and the recipient of the Martindale-Hubbel Distinguished® Rating.