A more thorough explanation:

National Association of Securities Dealers

The National Association of Securities Dealers (NASD) is a group of brokers and dealers that is authorized by the Securities and Exchange Commission (SEC) to regulate the over-the-counter securities market.

One example of the NASD's regulatory role is its oversight of the trading practices of its members. The NASD sets rules and standards for fair and ethical trading, and it monitors its members to ensure compliance with these rules.

Another example is the NASD's enforcement of disciplinary actions against members who violate its rules. The NASD has the power to fine, suspend, or even expel members who engage in fraudulent or unethical behavior.

The examples illustrate how the NASD functions as a regulatory body for the over-the-counter securities market. By setting rules and standards for fair and ethical trading, and by enforcing disciplinary actions against members who violate these rules, the NASD helps to maintain the integrity of the market and protect investors from fraudulent or unethical behavior.