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National Association Of Securities Dealers (NASD)

What was the 'National Association Of Securities Dealers - NASD'

The National Association of Securities Dealers (NASD) was the self-regulatory organization of the securities industry responsible for the operation and regulation of the NASDAQ stock market and over-the-counter markets. It also administrated exams for investment professionals, such as the Series 7 exam. The NASD was charged with watching over the NASDAQ’s market operations; however, in 2007, it was merged with the Financial Industry Regulatory Authority (FINRA).

Explaining 'National Association Of Securities Dealers - NASD'

The NASD was first founded in 1939 and was active in provisions to the Securities Exchange Act of 1934. It was also the leading founder of the NASDAQ stock market, which was established in 1971. Operating as an overseer of stock market operations for market activity and the NASDAQ under the overall supervision of the Securities and Exchange Commission (SEC), the NASD played a leading part in the management of stock trading in the market from 1939 to 2007. In 2007, it merged with the New York Stock Exchange's (NYSE) regulation committee to form FINRA.

Financial Industry Regulatory Authority

FINRA is an independent regulatory entity that functions similar to its NASD predecessor and oversees all stock market operations in the United States. Its functions include the oversight of all brokerage firms, branch offices and securities representatives. FINRA is monitored by the SEC and sanctioned to enforce the rules and regulations of the SEC.


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