The financial acronym SEC stands for the Securities and Exchange Commission. The SEC is an independent agency of the U.S. government and is responsible for enforcing the federal securities laws. The SEC also acts as the regulatory body which oversees the securities industry in the United States.
For example, the Securities and Exchange Commission or SEC was begun by an act of the U.S. Congress with the Securities Exchange Act of 1934 as a way to regulate the securities industry which had taken a major blow in the stock market crash of 1929. The first chairman of the SEC was Joseph Kennedy, father of former U.S. President John F. Kennedy. The agency is separated into four main divisions: Trading and Markets, Corporation Finance, Investment Management and Enforcement. The SEC maintains a watchful eye on the securities business and also oversees all major stock and options exchanges. When deemed necessary, the SEC will also file lawsuits against fraudulent organizations operating within the financial sector.