Knowledge of Capital Markets

The Securities and Exchange Commission — the federal government agency created by the Securities Exchange Act of 1934 to enforce federal securities laws and oversee the securities industry.

A government agency — it is the ultimate securities regulator. SROs like FINRA, the MSRB, and CBOE operate under SEC oversight.

Broker-dealers doing securities business with the public in the U.S., plus their registered representatives. FINRA writes conduct rules, administers qualification exams, and disciplines members.

FINRA can censure, fine, suspend, or bar members and individuals from the industry. It cannot send anyone to prison — only courts can impose criminal penalties.

The Municipal Securities Rulemaking Board writes rules for firms that deal in municipal securities, but it has NO enforcement power. Its rules are enforced by FINRA and the SEC (for securities firms) and by bank regulators (for bank dealers).

No. The MSRB regulates the dealers, brokers, and municipal advisors that trade or advise on municipal securities — not the municipal issuers themselves, which are largely exempt from federal registration.