Table of Contents

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The Investors Guide to the Securities Industry

Introduction

Definitions

Origin of the Guide and NASD Opposition to its Publication

The Curious Phenomena of Self-Regulation

An Overview of the Industry

Types of Brokerages

Conflicts of Interest and Common Forms of Wrongdoing

Firm Definition and Registration Requirement

Registration of Brokers

State Registration and Regulation

Fingerprinting

Financial Requirements

Financial Statements

Securities Investor Protection Corporation: Self-Insurance for the Brokerage Industry

Mandatory Arbitration: Self-Adjudication for the Brokerage Industry

Public Investors Arbitration Bar Association

Sources of Information Regarding Brokers and Brokerages

Central Registration Depository

State Securities Regulators

North American State Securities Administrators Association

U. S. Securities and Exchange Commission

FINRA BrokerCheck and National Association of Securities Dealers Public Disclosure Program

The PDP “Big Firm Exception”

Other Exceptions to the PDP

“Expungement”

Industry Practices

Short Selling (audio/visual presentation) by Patrick Byrne, CEO Overstock

Naked Short Selling (PDF) by Patrick Byrne, CEO Overstock

Money Management Industry

Mutual Fund Industry