The self-regulatory system for U.S. securities firms has three tiers of supervision: the SEC oversees self-regulatory organizations like the NYSE and NASD, who then oversee broker-dealers. Firms rely on their own internal systems to prevent securities law violations. If these systems fail, firms can face fines or stricter penalties. The book examines how this system works, the regulatory issues firms face, why some firms have more problems, and how to improve self-regulatory systems.