nThe 1934 Act established the Securities and Exchange Commission to enforce thenew legislation and set standards for fair dealing and trading in securities.
nThe SEC is headed by five Commissioners who are appointed to five-year terms by the President with the consent of the Senate.The SEC enforces statutory requirements
and promulgates regulations consistent with those requirements.
nFor example, the SEC’s Rule 10(b) stipulates that “insiders” who have material information about a company must refrain from dealing in the company’s securities until such information is available to the general public.
nTo enforce the securities laws, the SEC can file civil
suit, invoke its own
administrative processes, or refer matters to the Justice Department for criminal prosecution.