FINRA. A self-regulatory organization founded in 2007 by a merger between the NASD and NYSE Regulation, Inc., which took on all of the responsibilities previously handled by the NASD. The company is responsible for the operation and regulation of the Nasdaq stock market and over-the-counter markets. FINRA investigates complaints against member firms and tries to ensure that all of its members adhere to both its own standards and those laid out by the SEC. FINRA has the power to expel its members from an exchange in the case of wrongdoing, but it cannot take legal action against a member other than by reporting it to the SEC. The organization is run by a Board that takes half of its representatives from the securities industry and half from the public.