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The National Association of Securities Dealers, also known as the NASD, is the regulatory body primarily responsible for the regulation of persons involved in the securities industry in the United States. The Securities and Exchange Commission delegated this responsibility to the NASD. The NASD is a Self Regulatory Organization, or SRO, in that it is not directly a government agency. Image File history File links Download high resolution version (1536x2048, 276 KB)National Association of Securities Dealers executive office building at 1735 K Street NW in Washington, D.C. Taken by User:Erifnam on the evening of Feb. ...
Image File history File links Download high resolution version (1536x2048, 276 KB)National Association of Securities Dealers executive office building at 1735 K Street NW in Washington, D.C. Taken by User:Erifnam on the evening of Feb. ...
K Street, epicenter of American lobbying. ...
Aerial photo (looking NW) of the Washington Monument and the White House in Washington, D.C. Washington, D.C., officially the District of Columbia (also known as D.C.; Washington; the Nations Capital; the District; and, historically, the Federal City) is the capital city and administrative district of the...
Securities are tradeable interests representing financial value. ...
SEC is a TLA which can refer to: In general context, an abbreviation for second. ...
All firms dealing in securities that are not regulated by another SRO such as the Municipal Securities Rulemaking Board, the MSRB, are required to be member firms of the NASD. Persons licensed to make securities transactions with the public are known as registered representatives, and are also registered with, and regulated by, the NASD. The Municipal Securities Rulemaking Board, often referred to simply as the MSRB makes rules regulating dealers who deal in municipal bonds, municipal notes, and other municipal securities. ...
Regulation of the securities industry is an attempt to keep all persons working in the industry following ethical practices that are in the best interest of consumers. To enforce this, the NASD is given the power to levy fines against member firms and registered representatives that they deem have broken the rules. To this end, the NASD is very valuable to the industry in building the public trust that their needs will be safeguarded. However, the sole funding of the NASD is from the fines and fees on member firms. This is criticized for the fact that it creates an incentive for the NASD to fine a firm for anything it can find solely in an effort to pay for the investigation costs already incurred, even if no serious violations are uncovered.
Another criticism is that the NASD has pursued relatively minor abuses, while the major problems related to the industry are largely ignored.
The NASD also operates the nation's largest arbitration forum for the resolution of disputes between customers and member firms, as well as between brokerage firm employees and their firms.
See Also
List of finance topics What follows is a list of over 250 Wikipedia articles on finance topics. ...
Introduction to the Federal Securities Laws
Introduction to Securities Arbitration
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