Rules Of Fair Practice

A set of rules and regulations developed by the National Association of Securities Dealers (NASD). The rules are a standard which members of the NASD must follow regarding their duties to customers.

Investopedia Says:
Since the NASD is a self-regulatory organization the rules it enforces must be followed in addition to any commercial securities laws that have been passed. In a broad view, the Rules of Fair Practice cover the fair dealing, duty of loyalty, obligation of disclosure and other duties stockbrokers provide to their customers.

Related Links:
How do you find the right broker for your investment needs? Start by reading our broker tutorial. Brokers and Online Trading
If you're a rookie investor, your first big investment decision should be an informed one. Picking Your First Broker
We go over the factors that determine different investing personalities, and the services that best suit them. Choosing A Compatible Broker

Set of rules established by the Board of Governors of the National Association of Securities Dealers (NASD), a self-regulatory organization comprising investment banking houses and firms dealing in the Over the Counter securities market. As summarized in the NASD bylaws, the rules are designed to foster just and equitable principles of trade and business; high standards of commercial honor and integrity among members; the prevention of fraud and manipulative practices; safeguards against unreasonable profits, commissions, and other charges; and collaboration with governmental and other agencies to protect investors and the public interest in accordance with Section 15A of the Maloney Act. See also Five Percent Rule; Immediate Family; Know Your Customer; Markdown; Riskless Transaction.