Wednesday’s Word: Arbitration

By Dylan Donley, Spring 2014 Graduate Research Assistant

Arbitration is a form of alternative dispute resolution in which consists of a hearing and the determination of a dispute or settling of differences between parties by a person or panel of people mutually agreed upon by the parties. In terms of arbitration relating to investment disputes, FINRA has a specific arbitration process by which investors are able to have their investment disputes against their brokers or dealers heard and resolved by an arbitrator or panel of arbitrators. The results of arbitration are binding on both parties.

For more information about the FINRA securities arbitration process, read more here.