What is the role of the NASD in regulating the securities industry?

The National Association of Securities Dealers (NASD) is the primary regulator of the securities industry in Washington. The NASD oversees the activities of broker-dealers who buy and sell securities for their customers, as well as the activities of firms that issue and market those securities. The NASD sets and enforces high standards of conduct and business practices for the firms it regulates. The NASD develops regulations and guidelines for registered broker-dealers to ensure that they act in their customers’ best interests and that the markets remain fair and orderly. It also oversees the licensing and registration of firms and their employees, and sets rules for membership in its organization. The NASD also investigates possible violations of investment fraud law by broker-dealers and the firms they work with. It inspects firms to make sure they comply with its rules, and it can impose sanctions on firms and their employees for violations. Finally, the NASD provides investor education and protection. It has an Investor Education Foundation that provides free educational resources to consumers, as well as a Securities Investor Protection Corporation that offers protection to investors who have suffered losses due to fraud or broker misconduct.

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What is the role of the NASD in regulating the securities industry?

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