NASD Launches $10-Million Investor Education Program

The NASD announced a $10-million project Tuesday to provide information and tools to help investors better understand the financial markets as more and more Americans entrust their money to Wall Street.

The initiative, spearheaded by the NASD’s nonprofit Investor Education Foundation, comes as popular investments such as mutual funds are marred in an improper-trading scandal, which has heightened the importance of disclosure.

“We want to determine how to improve disclosure to investors and find better ways to provide them with valuable information,” said the NASD’s John Gannon.

The foundation is seeking nonprofit groups and researchers to conduct projects that would broaden the body of financial knowledge among American investors, improve disclosure of information to them and help retirees manage their investments.

NASD, formerly known as the National Assn. of Securities Dealers, has recently asked companies to disclose information in “plain English” as a step to help investors.

At a time when an increasing number of Americans have a stake in the markets, through mutual funds, 401(k) retirement funds or individual stocks, NASD Chief Executive Robert Glauber stressed the importance of financial literacy.

“There is clearly a demand for more investor education,” he said.