Final answer:
FINRA is the authority that governs the OTC market, enforcing rules and protecting investors in securities not listed on formal exchanges. The OTC market includes securities not listed on a formal exchange, and FINRA oversees the activities in this market to ensure market integrity and protect investors.
Step-by-step explanation:
The governing authority for the Over-the-Counter (OTC) market is the Financial Industry Regulatory Authority, commonly known as FINRA. FINRA is a self-regulatory organization that operates under the supervision of the Securities and Exchange Commission (SEC), and it is responsible for writing and enforcing rules governing registered brokers and broker-dealer firms in the United States. The OTC market includes securities not listed on a formal exchange, and FINRA oversees the activities in this market to ensure market integrity and protect investors.