# Fair & Efficient Markets (DD-187)

> The US Securities and Exchange Commission (SEC) was created by the Securities Exchange Act of 1934, after the 1929 stock market crash and during the Great Depression. Its stated mission is to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation. It requires public companies to disclose financial and other information, oversees exchanges, brokers and investment advisers, and brings civil enforcement actions for violations such as fraud and insider trading. Joseph P. Kennedy was its first chairman. The footage shows the SEC building and market screens, with the presenter.

- Department: History
- First published: 2024-01-17
- Last updated: 2024-01-17
- Permalink: https://detailenjoyer.com/case/fair-efficient-markets/
- Original Reel title: Fair & Efficient Markets 📈
- Author: Marcus Easterling (DetailEnjoyer), The Detail Department

## On the timeline

- **1934**: The Securities Exchange Act creates the SEC

Full timeline: https://detailenjoyer.com/timeline/?case=fair-efficient-markets

## Quick facts

- **DD-187-F01**: The SEC was created in 1934. _(Write-up · Exhibit A (1934))_
- **DD-187-F02**: It followed the 1929 crash. _(Write-up · Exhibit B (After 1929))_

## Write-up

The SEC was created in 1934 after the 1929 crash. It can bring cases for fraud and insider trading.

1. **1934**: The SEC was created in 1934.
2. **After 1929**: It followed the 1929 crash.
3. **Mission**: It protects investors and keeps markets fair.
4. **Disclosure**: Public companies must disclose information.
5. **Enforcement**: It brings cases for fraud and insider trading.

## Related case files

- [Fresh Fiat (DD-622)](https://detailenjoyer.com/case/fresh-fiat/): I linked more about US money
- [Money Isn't Real? (DD-186)](https://detailenjoyer.com/case/money-isnt-real/): I linked how the money itself works

## Reel vs. record

- **Note**: None needed.

## Video: Fair & Efficient Markets: The SEC Was Created in 1934 After the 1929 Crash

- Duration: 34.2 s · Published: 2024-01-17
- File: https://detailenjoyer.com/assets/videos/C2Oe4rHt1Cs.mp4

### Transcript

The SEC or U.S. Securities & Exchange Commission was established in 1934 in response to the Great Depression. DID YOU KNOW? Its primary purpose is to protect investors, maintain fair and efficient markets, and facilitate capital formation. The SEC oversees and regulates the securities industry ensuring that companies provide accurate and transparent information to the public. This regulatory body plays a crucial role in fostering confidence in the financial markets. One of its central functions is enforcement where the SEC investigates potential violations of securities and takes legal action against wrongdoers ranging from cases of fraud to insider NOW YOU KNOW!

## Questions & answers

**Q: When was the SEC created?**  
A: By the Securities Exchange Act. _(Source: Write-up · Exhibit A (1934) · Wikipedia: U.S. Securities and Exchange Commission)_

**Q: What event led to it?**  
A: During the Depression. _(Source: Write-up · Exhibit B (After 1929) · Wikipedia: U.S. Securities and Exchange Commission)_

**Q: What is part of its mission?**  
A: Plus fair markets. _(Source: Write-up · Exhibit C (Mission) · Wikipedia: U.S. Securities and Exchange Commission)_

**Q: What must public companies do?**  
A: Transparency. _(Source: Write-up · Exhibit D (Disclosure) · Wikipedia: U.S. Securities and Exchange Commission)_

**Q: Who was the first SEC chairman?**  
A: Appointed in 1934. _(Source: Write-up · Exhibit E (Enforcement) · Wikipedia: U.S. Securities and Exchange Commission)_

## Sources

- [Wikipedia: U.S. Securities and Exchange Commission](https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission)

## Cite this case file

Easterling, Marcus. "Fair & Efficient Markets." The Detail Department (DetailEnjoyer), case file DD-187, last updated Jan 17, 2024. https://detailenjoyer.com/case/fair-efficient-markets/