NU Online News Service, Dec. 2, 2003, 1:07 p.m. EST – NASD, Washington, has set up the NASD Investor Education Foundation.[@@]

The foundation, which will start with an endowment of $10 million, will be responsible for educating consumers about investing and investment markets.

NASD officials decided to organize the foundation after commissioning a survey that found that 50% of U.S. consumers polled believed that stock market losses were insured and that fewer than 30% of U.S. consumers knew what a “no load” mutual fund was.

The foundation will get some income in future years from fines collected in connection with NASD’s disciplinary activities, NASD says.

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, NASD says.