Overview of Financial Markets and Regulation

The __________________________________________ is the SRO for the OTC market.

The Financial Industry Regulatory Authority (FINRA) is the SRO for the OTC market.

Name some Self-Regulatory Organizations (SROs).

FINRA, MSRB, CBOE, and other exchanges (NYSE)

What is the role of an SRO?

Maintain fair and orderly securities markets and establish rules and regulations for protecting investors

Which department of a broker-dealer handles the underwriting and issuance of securities for clients?

Investment banking

What is the primary purpose of the Securities Act of 1933?

Provide investors with full and fair disclosure regarding new issues (prospectus)

The Securities Exchange Act of 1934 regulates the __________ _______.

Secondary Market

What U.S. Government agency, created by the '34 Act, enforces securities laws?

The Securities and Exchange Commission (SEC)

What is FINRA's primary objective?

To adopt, administer, and enforce rules in the securities industry.

The Securities Act of 1933 regulates ____________.

new issues