The US Securities and Exchange Commission (SEC)

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Introduction The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the taxpayers’ money. This paper focuses on the Security and Exchanges Commission (SEC) budgeting and financing. The key point addressed is whether the SEC competes for funding with all other agencies for federal allocation or whether the agency has its own earmarked revenue which may lead to overspending by the entity with the protected source of funds. The SEC financing As it is set up, the SEC is a federal agency and obtains its capital from the Congress. The senate committee on appropriation is responsible for SEC budget allocation. SEC; common with other federal agencies benefits from the Treasury Appropriation Fund (Becker, 2012). Funding is for the agency is mainly from collection from the industry and other financial activities. Budget resources for the SEC include Funds from Dedicated Resources, the Reserved Fund, the Deposit Fund and the Miscellaneous Receipts Accounts. Funds from dedicated collections Most of the funds in budget spending for SEC through funds from dedicated collections. In this ca... ... middle of paper ... ... capital market, the SEC financing includes funds from dedicated collections, reserved fund, deposit fun and Miscellaneous Receipts Accounts. The agency’s financial statements are prepared in accordance with the general accepted accounting principles as per requirement for federal entities reporting requirement. The SEC does not actually compete for funding with all other uses of federal money or since it has its own earmarked revenues which may lead to overspending by the entity with the protected source of funds. To limit spending however, SEC reimburses excessive revenue to the Congress and does not spend without the authorization by the Congress and authorization for spending is controlled by the senate. Under its mission, SEC effectively protects the taxpayer and investors by maintaining fair, orderly and sustainable markets and facilitating capital formation.

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