National Association of Securities Dealers

National Association of Securities Dealers (NASD)

Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market.

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Financial Industry Regulatory Authority

A self-regulatory organization that assists the SEC in regulating financial markets, notably exchanges and companies that deal with securities. Among other duties, FINRA enforces rules, arbitrates disputes, and provides training and licensing services. Contrary to the belief of some, it is not a government agency. It was created in 2007 with the merger of the National Association of Securities Dealers and the NYSE regulatory board.

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National Association of Securities Dealers (NASD)

An association of over-the-counter brokers and dealers that establishes legal and ethical standards of conduct for its members. NASD was established in 1939 to regulate the OTC market in much the same manner as organized exchanges monitor actions of their members. One major advantage to membership is that members sell securities at wholesale to other members but at retail to nonmembers. See also Rules of Fair Practice, Uniform Practice Code.

What actions should I take if I feel my broker has acted inappropriately?

Inappropriate actions by a broker should be reported to the office manager. If nothing is done to solve the problem, a complaint can be filed with the firm's compliance department or the National Association of Securities Dealers. Information about filing a complaint with NASD can be found on the organization's website, www.nasdr.com.

George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GA

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National Association of Securities Dealers (NASD)

What Does National Association of Securities Dealers (NASD) Mean?

The self-regulatory organization (SRO) of the securities industry responsible for the operation and regulation of the Nasdaq stock market and over-the-counter markets. It also administers the licensing examinations for investment professionals, such as the Series 63, Series 6, and Series 7 examinations.

Investopedia explains National Association of Securities Dealers (NASD)

The NASD watches over the Nasdaq to make sure the market operates fairly and efficiently. In 2007, the NASD merged with the New York Stock Exchange's regulation committee to form the Financial Industry Regulatory Authority (FINRA).

Related Terms:
• Financial Industry Regulatory Authority—FINRA
• Nasdaq
• Over the Counter—OTC
• Over-the-Counter Bulletin Board—OTCBB
• Series 7