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Finance: What is FINRA? 5 Views


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Description:

What is FINRA? FINRA is the Financial Industry Regulatory Authority. They are responsible for ensuring that financial transactions are done fairly; basically they are in charge of and make the rules for investment firms and anyone engaging in securities trading.

Language:
English Language

Transcript

00:00

finance a la shmoop what is FINRA? Financial Industry Regulatory Authority

00:09

once again for those in the back that's Financial Industry Regulatory

00:13

Authority FINRA it's kind of a yoga mantra thing because firms get FINRA'd [Woman meditating with yoga]

00:19

every day well FINRA is the private agency that

00:23

regulates exchanges and brokerage firms that are members they administer tests

00:29

and actually create them you know like these the series exams which we just [Series exams appear]

00:33

happen to have shmoop if you've got 70 to 80 spare hours and want to give them

00:38

a looksie... think about all the bad PR that sleazy financial wheeler-dealers [Financial dealers discussing matters]

00:42

got back in the 1930s before the various acts were enacted you know the 33 34 40

00:48

nobody was gonna trust "Wall Street people" unless there was a kind

00:54

of Good Housekeeping Seal of fair-and-square dealers who made sure

00:58

that the various laws and compliance things were actually upheld..Note,

01:02

importantly that it isn't the job of FINRA or well any government body to

01:07

recommend buying selling or holding any particular security because you're gonna

01:11

make money it's only their job to be sure that the letter of the law is [Letter of law appears]

01:15

followed and that that letter is presented in a way so that everyone has

01:20

fair access to relevant and similar information it's all about making a fair

01:25

and square level playing field for all without that well Manhattan would look a

01:30

lot more like Mogadishu than Manhattan [Manhattan skyline appears]

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