The Securities Act of 1933 was Congress's opening shot in the war on securities fraud. Congress primarily targeted the issuers of securities. Companies which issue securities (called issuers) seek to raise money to fund new projects or...
business law
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is a federal administrative agency tasked with monitoring markets, enforcing securities laws, and developing new regulations. Congress established the SEC in the Securities Exchange Act of 1934,...
Securities Dispute Resolution
Dispute resolution methods, including mediation and arbitration, are non-judicial processes for settling disputes between two or more parties. In the securities industry, mediation and arbitration are very common. Formal litigation in court is rarely...
Securities Dispute Resolution: Deciding Whether to File an Arbitration Claim
Most retail investors must sign arbitration agreements when they open investment accounts with their brokers. Consequently, they are required to submit any disputes with their broker to arbitration. This page offers factors to consider for investors...
Securities Dispute Resolution: Deliberation, Awards, and Fees
After hearings are concluded, the arbitrator or panel of arbitrators retires to deliberate and issue a decision in the form of a written document called an “award.” The length of deliberations depends on a number of factors, including the number of...
Securities Dispute Resolution: Discovery
The discovery process is the phase in which both parties research and investigate the facts and events that gave rise to the claim. During the discovery phase, parties will have access to information that was inaccessible to them before. While the...
Securities Dispute Resolution: Enforcing Awards
When investors are granted awards in FINRA arbitration, they must be paid within thirty days unless the opposing party files a motion to vacate the award in a court. Because FINRA has authority to suspend brokerage firms or licensed brokers that do not...
Securities Dispute Resolution: Experts
Experts can offer their opinions on a variety of issues such as the management of the account and calculation of profits.
Experts can provide necessary information to support claims made by either the claimant or the respondent. The decision...
Securities Dispute Resolution: Filing a Complaint
Once the decision is made to pursue arbitration, a claimant must prepare a Statement of Claim. This document must be filed with the Financial Industry Regulatory Authority (FINRA). The Statement of Claim sets forth the types of claims being made and...
Securities Dispute Resolution: Hearings
HEARINGS
Arbitration hearings are the equivalent of a courtroom trial, but less formal. During hearings, all the parties meet to hear the case and present supporting evidence. Usually, hearings begin with a brief statement by the panel, followed by...