Standards in the Brokerage Business

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Authors
Militti, Edward J.
Issue Date
1975-05-07
Type
Thesis
Language
en_US
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Abstract
Since it would be very impractical to study in detail all the regulatory forces within the securities industry, I have decided to limit the subject matter of this paper to that of the National Association of Security Dealers. The National Association of Security Dealers is commonly known as the N.A.S.D. The reason that the N.A.S.D. was chosen for investigation is that the N.A.S.D. is the only organization registered under the Maloney Act to function as "a mechanism of self-regulation among the over-the-counter brokers and dealers operating in interstate and foreign commerce or through the mail." | Now that it is known what the function of the N.A.S.D. is, an examination of the purpose of this research should be put forth. The goal of this study is to answer the question "can a self-regulating organization, the N.A.S.D., be successful in protecting the securities industry?" | The above hypothesis has been introduced and in order for us to reach some conclusions, an orderly approach will be presented. The order of sequence will be first to a history of the N.A.S.D. This will involve a description of what the securities market was like before the introduction of regulatory bodies. This chapter will also explain what the N.A.S.D. is and what the organizational structure is like. The next step in discussing the N.A.S.D. is to explore those areas where the N.A.S.D. is involved and then to explain the purposes of the N.A.S.D. After explaining what the association has accomplished, the by-laws will be discussed. The by-laws are divided into three areas: Rules of Fair Practice, Uniform Practice Code and the Code of Procedure for Handling Trade Practice Complaints. | Before we reach conclusions on this subject matter, the next step is to give examples of how the N.A.S.D. has been deficient. Since there is not an organization that cannot strive for higher goals, suitable recommendations will be given depending upon the degree of success or failure in those pertinent areas governed by the association. | Recent growth in the securities business has been phenomenal. Many more individuals have been investing in securities every year and, consequently, the volume of trading has risen to unprecedented levels. Competition with other investment media and other intermediaries for the country's investment dollars, has never been keener than it is today. Therefore, the securities industry needs well-qualified and ethical professionals more urgently than ever before. | It is unquestionably a lot harder than it used to be for an individual to acquire a professional breadth of knowledge. So, for both seasoned and aspiring professionals in the stock brokerage industry, a comprehensive study in the "do's and don1ts of the securities industry" can help them provide better service to investors--which is the securities industry's primary reason for existence.
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Creighton University
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A non-exclusive distribution right is granted to Creighton University and to ProQuest following the publishing model selected above.
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