SEC stands for Securities and Exchange Commission
The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
It was formed on June 6, 1934.
Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called Blue Sky Laws that were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required the registration of all securities offerings and sales, as well as of stock brokers and brokerage firms.
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. No more than three can be from a single political party. Each commissioner serves a five-year term, which are staggered so that one commissioner's term ends on June 5 of each year. Currently the SEC commissioners are chairman Mary L. Schapiroo (D), Kathleen L. Casey (R), Elisse B. Walter (D), Luis A. Aguilar (D) and Troy A. Paredes (R).
The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.
The SEC's foundation was laid in an era that was ripe for reform. Before the Great Crash of 1929, there was little support for federal regulation of the securities markets. This was particularly true during the post-World War I surge of securities activity. Proposals that the federal government require financial disclosure and prevent the fraudulent sale of stock were never seriously pursued.
Sources:
http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission
http://www.sec.gov/about/whatwedo.shtml
The Difference Between the First New Deal and the Second New Deal
Historians distinguish a "First New Deal" (1933) and a "Second New Deal" (1934–36). Some programs were declared unconstitutional, and others were repealed during World War II. The "First New Deal" (1933) dealt with groups; from banking and railroads to industry and farming, all of which demanded help for economic recovery. A "Second New Deal" in 1934-36 included the Wagner Act to promote labor unions, the Works Progress Administration (WPA) relief program, the Social Security Act, and new programs to aid tenant farmers and migrant workers. The final major items of New Deal legislation were the creation of the United States Housing Authority and Farm Security Administration, both in 1937, then the Fair Labor Standards Act of 1938, which set maximum hours and minimum wages for most categories of workers[1] and the Agricultural Adjustment Act of 1938.
Sources:
http://en.wikipedia.org/wiki/New_Deal
http://www.u-s-history.com/pages/h1851.html
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