1. The market as an information disclosure system

SEC does not guarantee profitand does not prohibit risk.
It requires:

  • full,

  • reliable

  • comparable information.

This is a revolution of thinking.

📌 Principle:

“Tell the truth — and let the market decide.”

2. Mandatory reporting

Standards appear:

  • regular reports

  • audit,

  • public disclosures (10-K, 10-Q, 8-K).

An investor receives for the first time:

  • data

  • digits

  • responsibility for lies.

3. Rethinking manipulation and insider

SEC:

  • formalises the concept of insider trading,

  • makes manipulation criminal,

  • introduces enforcement as a key function.

4. Building trust as an asset

SEC has transformed the market:

  • from the casino for the initiated

  • in mechanism for raising capital.

Without this it would not have happened:

  • pension funds

  • ETF,

  • institutional capital.