The Securities and Exchange Commission (SEC) oversees the securities market and holds companies to high standards of public disclosure. The commission reviews informational documents from each company such as annual reports, 10-K reports, and supplemental investor information packages in order to determine if the company is being transparant enough for investors. The goal of the SEC is to ensure that investors have access to good information about a company.

Of course, you will only benefit from the SEC's dilligence if you take time to look over the investor materials given to you by the companies you hold stock in. The SEC doesn't guarantee that the information you receive will be accurate, but it does give you a way to fight back in the event that a company gives you bad information.

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