Understanding the National Association of Securities Dealers and Its Impact
Definition & Meaning
The National Association of Securities Dealers (NASD) is a self-regulatory organization that oversees securities brokers and dealers. It operates under the supervision of the Securities and Exchange Commission (SEC). NASD plays a crucial role in regulating the NASDAQ stock market and over-the-counter markets, ensuring they function properly. Additionally, NASD administers important examinations, such as the Series 7 exam, which is required for investment professionals to demonstrate their competency in the field.
Legal Use & context
NASD is primarily involved in the regulation of the securities industry, which includes areas such as finance, investment, and trading. It ensures that brokers and dealers comply with federal laws and regulations. This term is relevant in legal contexts concerning securities law, investment compliance, and professional licensing. Individuals can find forms and resources related to NASD regulations through platforms like US Legal Forms, which provide templates for compliance and regulatory needs.
Real-world examples
Here are a couple of examples of abatement:
One example of NASD's role is when a new broker-dealer firm registers with the organization to ensure they meet all regulatory requirements before commencing operations. Another example (hypothetical) could involve an investment professional preparing for the Series 7 exam to obtain their license to trade securities.