Question

1. (Introductory) What is the U.S. Securities and Exchange Commission? What is its purpose? Why does it have information of interest to traders seeking to gain illegal profits? Hint: you may find this information on the web site at www.sec.gov 2. (Introductory) What methods did hackers use to get access to the databases of the U.S Securities and Exchange Commission containing financial information? 3. (Advanced) How do the events described in this article demonstrate the critical need to maintain the security of financial information? 4. (Advanced) What types of entities other than the SEC does Chair Jay Clayton mention as vulnerable to cybersecurity threats? Why are these types of entities particularly vulnerable?

Answer 1

ANSWER-1) The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency who holds primary responsibility for enforcing the laws on federal securities, proposing securities rules, and regulation of the securities industry, the country's stock and options exchanges, and other activities and organizations, including the electronic securities markets in the country. The purpose is to protecting investors, maintaining orderly and fair functioning of securities markets and facilitating formation of capital. The main goals are to interpret and take enforcement actions on securities laws; issuance of new rules; providing oversight over securities institutions; and ensuring proper coordination regulation among different levels of government. SEC provides investors with access to registration statements, periodic financial reports and several other forms of securities through its comprehensive electronic, gathering data, analysis and retrieval (EDGAR) database. Thus promotes full disclosure for public, protecting investors against frauds and manipulative practices in the market, and monitors corporate takeover actions in the country.