In this section we’ll review the different areas of oversight governing investments.
What Does the SEC Do?
The SEC (Securities Exchange Commission) serves to register and regulate investment companies. They are a US Government agency, and enforce laws pertaining to the financial industry.
Is FINRA a Government Agency?
No, FINRA (Financial Industry Regulatory Authority, Inc.) is an independent organization. They are a non profit group. Authorized by Congress, FINRA’s job is to protect investors.
Can I Write Off Stock Losses?
If you lose more than you gain through investing, this is called a capital loss. You can reduce your tax liability by writing off a capital loss, but only to a certain extent.