ShmoopTube

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finance a la shmoop what is a self-regulatory organization or SRO and

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no it's not standing-room-only SRO throw me the money yeah well yeah it's [Standing room only sign appears at dance floor]

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something like that alright so here's the sitch its 1927 and the headlines are

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riddled with stories of city slickers getting rich on Wall Street investing in [Newspaper front page appears]

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things poor farmer Joe never heard of and couldn't even spell if he tried and

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wheat ain't one of the things Beauregard is investing in so along comes farmer [Beauregard appears from cornfield]

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Joe at just the wrong time literally betting the farm on velcro parachutes

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only to go bankrupt after the market crash and multiple physical human [People falling from sky]

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crashes that followed yeah look out below

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then came the various 1933-34 and other acts all of which tried to further

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legislate fair and square dealing in the investing world in the US well if you [People shake hands]

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were living outside of the US well you were on your own ha well one of the [Man holding Canada flags]

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things that came along was the SEC the Securities and Exchange Commission which

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was given powers to regulate and pursue bad dealers well stock brokers bore the [Stockbroker in a suit appears]

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brunt of much blame for unfair or bad selling practices to the ignorant the

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unqualified the you know farmer hand but the brokerage industry realized quickly

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that it would be dead on its own or at least regulated to death if it didn't [Death walks up to stockbroker]

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step up and manage its own people so along came a variety of SRO or

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self-regulatory organizations which lived ostensibly outside of the direct

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control of the legislative bodies behind them and in a strange way they are

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vastly more effective why well because stockbrokers know how other stockbrokers [Stockbroker laughing and reading a book]

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cheat catching the bad eggs is a whole lot easier when you're putting them in [Man picks up egg from basket]

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your own basket rather than into your you know hula hoop so today FINRA is the [Egg thrown into hoola hoop]

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largest and most pervasive SRO and it manages myriad elements of Wall Street

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and the investing community world in America and a little bit beyond yeah so

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if you're dying to learn more about FINRA we've got you covered we can throw

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you the video that we did it's Spielberg it's fun for that one [Jerry watching FINRA shmoop video]

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