Which of the following best describes FINRA?

The best description of FINRA is that it is an independent, nonprofit organization authorized by Congress. FINRA, which stands for the Financial Industry Regulatory Authority, plays a crucial role in the regulation of brokerage firms and exchange markets in the United States. Its primary function is to protect investors by ensuring that the financial markets operate fairly and honestly.

Being authorized by Congress underscores its official capacity and importance in the financial regulatory framework. As a nonprofit organization, its focus is on serving the public interest rather than generating profit, which aligns with its mission to maintain market integrity and promote investor protection.

Other options do not accurately capture FINRA's role or structure. For instance, describing it as a government agency may imply direct governmental control and oversight over all financial transactions, which does not accurately represent FINRA's organizational status. Additionally, identifying it as a private company offering investment advice overlooks its regulatory function and focus on compliance rather than advisory services. Lastly, referring to FINRA as a regulatory body for insurance companies is misleading, as its primary domain is the securities industry, not insurance.