FINRA is a self-regulatory organization for all securities firms doing business in the United States. FINRA sets its own rules and regulations in consultation with the Securities and Exchange Commission.
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The Securities and Exchange Commission was created under the Securities Exchange Act of 1934. This law, together with the Securities Act of 1933, aimed to restore investor confidence in the capital markets following the Great Depression. The role of the SEC is to protect investors and promote stability in the markets. The SEC has the authority to establish regulations and enforce securities laws covering the offer, sale, and exchange of securities, as well as participants in the securities marketplace.