What is the definition of The SEC (also known as Securities and Exchange Commission) ?

The SEC (also known as Securities and Exchange Commission) is a body set up by the US Congress with the purpose of regulating the security and takeover market. The SEC is needed for the protection of investors and to prevent any possible fraud. All public companies have to submit financial statements to the SEC and any corporate action in which a company acquires 5% or more equity in another firm must be reported to the SEC.

The SEC is made up of 5 commissioners, each of which is appointed and approved by the President of the US and the US Senate.