<Tr> <Td> </Td> <Td> This section needs additional citations for verification . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . (February 2017) (Learn how and when to remove this template message) </Td> </Tr> <P> The SEC has a three - part mission: to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation . </P> <P> To achieve its mandate, the SEC enforces the statutory requirement that public companies and other regulated companies submit quarterly and annual reports, as well as other periodic reports . In addition to annual financial reports, company executives must provide a narrative account, called the "management discussion and analysis" (MD&A), that outlines the previous year of operations and explains how the company fared in that time period . MD&A will usually also touch on the upcoming year, outlining future goals and approaches to new projects . In an attempt to level the playing field for all investors, the SEC maintains an online database called EDGAR (the Electronic Data Gathering, Analysis, and Retrieval system) online from which investors can access this and other information filed with the agency . </P> <P> Quarterly and semiannual reports from public companies are crucial for investors to make sound decisions when investing in the capital markets . Unlike banking, investment in the capital markets is not guaranteed by the federal government . The potential for big gains needs to be weighed against that of sizable losses . Mandatory disclosure of financial and other information about the issuer and the security itself gives private individuals as well as large institutions the same basic facts about the public companies they invest in, thereby increasing public scrutiny while reducing insider trading and fraud . </P>

The electronic data and record system of the securities and exchange commission is known as