The United States Securities and Exchange Commission (commonly
known as the SEC) is a United States government agency having primary
responsibility for enforcing the Federal securities laws and regulating the
securities industry. The SEC was created by section 4 of the Securities
Exchange Act of 1934 (now codified as 15 U.S.C. § 78d). In addition to
the 1934 Act that created it, the SEC enforces the Securities Act of 1933,
the Trust Indenture Act of 1939, the Investment Company Act of 1940,
the Investment Advisers Act of 1940 and other statutes.
The Securities and Exchange Commission has five Commissioners
who are appointed by the President of the United States with the advice
and consent of the Senate. Their terms last five years and are staggered
so that one Commissioner's term ends on June 5 of each year.
To ensure that the Commission remains non-partisan, no more than
three Commissioners may belong to the same political party.
The President also designates one of the Commissioners as Chairman,
the SEC's top executive.
