Answer
The Securities and Exchange Commission was established after the stock market crashed in 1929 to help develop and standardize financial information presented to stockholders.
Work Step by Step
The SEC works with private standard-setting bodies to develop Generally Accepted Accounting Principles (GAAP). The SEC allows the private Financial Accounting Standards Board (FASB) to develop standards, but may reject some proposals, or may pod the FASB to take quicker action in developing standards for certain accounting issues.
