What is the National Association of Investors Corporation (NAIC)?
The National Association of Investors Corporation (NAIC) was first founded in 1951 as the National Association of Investment Clubs. Today, the NAIC conducts its business as BetterInvesting.
The NAIC works as a sort of school/thinktank. It offers broad investment advice, educational information, and support that assists individuals in becoming knowledgeable, successful investors.
- The NAIC works to offer broad investment advice, educational information, and support that enables individuals to become successful investors.
- The fundamental elements of what became the NAIC began in 1940; through decades of hard work and self-promotion, investment clubs and individuals joined as members.
- Today, the NAIC continues to promote investing education. Adhering to its core belief that all individuals are capable of making wise investments when given the right tools, it works as a non-profit organization known as BetterInvesting.
History of the NAIC
The fundamental elements of the NAIC began in 1940. Fred Russell and several friends created the Mutual Investment Club of Detroit to explore investing in stocks. George Nicholson – a Harvard educated analyst – worked with Russell and his friends to understand investment strategies and best practices, passing on the core belief of the organization that anyone can invest successfully if given the right tools and information.
After ten years of successful investing, Russell’s club and two others in the Detroit area joined together to form the NAIC. Its mission at the outset was to educate Americans in the art and science of investing, teaching a core of common-sense principles. After two years of dedicated outreach, the NAIC listed more than 100 investment clubs as members, which comprised a total of around 1,500 people.
As a means of reaching investors around the globe, Nicholson and the NAIC worked to create the World Federation of Investment Clubs (WFIC), an organization that carries the same investment education torch as the NAIC on a global scale.
What the NAIC Does Today
The NAIC continues to promote investment information and support. Adhering to its strict belief that all individuals are capable of wise investments if given the right tools, it works as a non-profit organization known as BetterInvesting.
The organization produces and runs its own local and national learning events, and members speak at investing conferences around the country. It also lends its voice to media outlets, hosts an annual conference, operates the BetterInvesting website, and publishes BetterInvesting magazine.
The NAIC works on behalf of individual investors as well. The organization’s board of directors interacts with the Securities and Exchange Commission (SEC) and other government agencies, responding to requests concerning:
- Regulatory proposals being written
- Proposals being set before agencies
- The impact that potential regulations could have on investment agencies and individual investors
Since its inception, the NAIC’s been working to help everyday individuals gain the knowledge and support they need to become successful investors. In turn, the individuals perpetuate the core investment principles that the NAIC built its success on.
We hope you’ve enjoyed reading CFI’s explanation of the National Association of Investors Corporation (also known as BetterInvesting). CFI is the official provider of the global Commercial Banking & Credit Analyst (CBCA)™ certification program, designed to help anyone become a world-class financial analyst.
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