The primary control of security trading in the OTC is by
A) SIPC.
B) FDIC.
C) ADR.
D) NASD.

Question

Quizplus · Accepted Answer

The primary control of security trading in the OTC market is by the NASD (National Association of Securities Dealers). The NASD regulates and oversees broker-dealers operating in the OTC market, sets rules and regulations for trading, and provides a platform for dispute resolution. SIPC (Securities Investor Protection Corporation) is a nonprofit organization that provides insurance to protect investors against losses arising from the bankruptcy or other financial difficulties of broker-dealers, while FDIC (Federal Deposit Insurance Corporation) provides insurance to protect bank deposits. ADR (American Depositary Receipt) is a type of security that represents ownership in shares of a foreign company, typically traded on U.S. exchanges.

The Primary Control of Security Trading in the OTC Is