What is FINRA and what do they do? We briefly looked at this organization in our readings and discovered that it protect investors. I wanted to see FINRA in action.

This article explains  what FINRA does and this short video explains FINRA’s basic purpose.

With institutions as large as financial markets, it is difficult, but vital, to have FINRA. Knowing little about the financial markets myself, I would feel uncomfortable trusting money to people I have never met. The existence of fraud should necessitate caution at every corner (see here)  

The question then becomes, why is FINRA so important. Using what we learned in commerce about the time value of money, hoarding cash will not maximize its future value. Without FINRA or a regulatory body, the risk of fraud would prevent investment. This harms the investor as well as companies. The investor would be unable to expand the value of their money. The company could not use this money to expand and better the economy.

People should feel their money is safe and be protected from fraud. FINRA provides security for investors, and harshly disciplines companies that misbehave.