SEC Basics
What year was the SEC created?
1934
The SEC regulates companies that sell what to the public?
Stocks (or securities)
A company clearly reports its profits and risks.
Legal
How many commissioners run the SEC?
5
The SEC was created after what major stock market crash?
1929 Wall Street Crash
Name one major stock exchange the SEC oversees.
New York Stock Exchange or NASDAQ
A CEO uses secret information to sell stock before bad news is announced.
Illegal (Insider Trading)
The SEC’s main goal is to protect who?
Investors
Which president signed the law creating the SEC?
Franklin D. Roosevelt
True or False: Private companies must file the same reports as public companies.
False
A company lies about how much money it makes.
Illegal (Fraud)
Can the SEC send someone directly to jail?
No (criminal cases go to the Department of Justice)