The Foundation will have an initial funding level of $10 million, with additional resources in future years to come from fines collected in connection with NASD’s disciplinary activities. It will function as a separate, not-for-profit organization, and will complement NASD's investor education efforts. Grants from the Foundation will be used solely to fund educational programs, materials and research aimed at segments of the investing public who could benefit from additional resources.

The Foundation is a response to both the current environment in the markets and a recent survey conducted by NASD that showed investors still have a number of fundamental questions and misunderstandings about important investment issues. In the survey, an overwhelming 97 percent of investors realize they need to be better informed about investing. And nearly 50 percent incorrectly thought stock market losses were insured.

A board of directors will oversee the Foundation and will focus its grants on educational programs and materials aimed at segments of the investing public whose financial concerns are not being addressed. The Foundation will not be allowed to make grants or contributions to for-profit businesses or individuals or entities affiliated with NASD registered firms and members of the NASD Board of Governors.