Securities and Exchange Commission (SEC) is a federal government agency that is responsible for multiple duties which include protecting investors, facilitating capital formation, and maintaining orderly functioning of securities markets. In 1934, Congress created the SEC, which was the first federal regulator of securities market. The SEC protects the investors against fraud practices in the market and monitors corporate takeover actions in the U.S.. It also promotes full public disclosure. The SEC was created in a result to the U.S. stock market crashing in 1929. Congress passed the Securities Act of 1933 and Securities Exchange Act of 1934, which created the SEC. Before the SEC was created, blue sky laws existed. These blue sky laws were enacted and enforced at state level and regulated offerings and sale of securities to protect against fraud. They required registration of all securities offerings and sales along with every U.S. stockbroker and brokerage firm. The SEC is controlled by five commissioners. These five commissioners are appointed by the president. One of the five is designated as chairman of the SEC. Each of the commissioner’s terms last five years but each can serve eighteen more months until a replacement is found. There is also a law that states that no more than three of the five can be from the same political party. The SEC has five different divisions. Those divisions are corporation finance, trading and markets, investment management, enforcement, and economic and risk analysis. Its headquarters is in Washington D.C.. The SEC does have 11 regional offices across the U.S.. These SEC offices include: Office of General Counsel, Office of the Chief Accountant, Office of Compliance, Office of International Affairs, Office of Inverstor Education and Ascoxaxy, Office of Economic Analysis, Office of Information technology, Inspector General, SEC Office of the Whistleblower. Each of these offices have their own jobs and responsibilities to educate the public and explain the laws.The SEC is mainly for companies that trade on the public market. The SEC requires the management of a bank or company to prepare annual financial statement that corresponds to a financial reporting standard. The management has to have them audited and registered or published. The SEC oversees the securities markets, including securities exchanges, brokerage firms, dealers, investments advisors, and various investment funds. The SEC also provides registration statements and other data and periodic financial reports for investors. The SEC also has various laws at its disposal in which it can use to accomplish its objectives. These laws include: Securities Act of 1933, Securities Exchange Act of 1934, Trust Indenture Act of 1939, Investment Company Act of 1940, and Investment Advisers Act of 1940. Previous SEC commissioners and chairman include Jerome Frank, who was a leader of the legal realism movement, and William J. Casey, who head the CIA under Ronald Reagan. The SEC was created to help regulate trade to protect the public from fraud. The independent agency, created after the stock market crash, implements laws and securities for the regulation of stock exchanges. The SEC was created to protect the market and investors and continues to do so today.