What is securities arbitration?
A brokerage firm is a company that connects customers with the stock exchange. The broker is responsible for carefully monitoring the stock market and buying shares on behalf of their client, with the goal of making the client wealthier. Sometimes, disputes occur between clients and customers. Securities arbitration is the means by which these disputes can be resolved. Arbitration is a type of legal process that doesn’t involve a judge and jury.
So put it this way: if you work with a brokerage and have a dispute with how they’ve been operating, then you might want to use arbitration to come to a resolution. To do this, you’ll need the help of a securities arbitration attorney. They’ll look at your case and decide whether you have the right to sue your broker and, hopefully, win back some of the money that has been lost. You can contact a securities arbitration lawyer on this website: https://www.girardbengali.com/securities-arbitration-and-litigation/
In 1987, the U.S. Supreme Court held that brokerage firms could enforce predispute arbitration clauses contained in their standard form customer agreements. Virtually all brokerage firms’ customer agreement forms now contain arbitration clauses. As a result, most disputes between brokerage firms and customers are arbitrated. Arbitration is a private dispute resolution process in which three arbitrators are appointed to decide the merits of a case. One of the arbitrators is required to be associated, presently or formerly, with an NASD member. The purpose of having an “industry representative” on the panel is to assure that the panel will have the expertise and experience necessary to understand the transactions and practices involved in the case. The other two panel members are typically businesspersons, such as lawyers, accountants, investors or retired judges, who have an interest in securities or dispute resolution. In arbitration, the parties are typically represented by counsel a
Related Questions
- Does an arbitration case or claim filed against me with the Financial Industry Regulatory Authority (formerly the National Association of Securities Dealers, Inc.) require disclosure?
- Does the Division provide a forum for the arbitration of disputes regarding securities transactions?
- What Is Securities Arbitration and How Can It Help?
