SECURITIES AND EXCHANGE COMMISSION

(SEC) U.S. regulatory commission established by Congress in 1934 after the Senate Committee on Banking and Currency investigated the New York Stock Exchange's operations. The commission's purpose was to restore investor confidence by ending misleading sales practices and stock manipulations that led to the collapse of the stock market in 1929. It prohibited the buying of stock without adequate funds to pay for it, provided for the registration and supervision of securities markets and stockbrokers, established rules for solicitation of proxies, and prevented unfair use of nonpublic information in stock trading. It also stipulated that a company offering securities make full public disclosure of all relevant information. The commission acts as adviser to the court in corporate bankruptcy cases.