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Investments glossary

Arbitration


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Quotes of the day:

First responders did not find any drug paraphernalia or illegal drugs at the residence, the cause of death into Jackson Odell is pending an autopsy and toxicology report.

— Assistant Chief Coroner Ed Winter

Arbitration is a mechanism for resolving disputes between investors and brokers, or between brokers. It is overseen by the Financial Industry Regulatory Authority (FINRA), and the decisions are final and binding. Arbitration is distinct from mediation, in which parties negotiate to reach a voluntary settlement, and decisions are not binding unless all parties agree to them. Arbitration is not the same as filing an investor complaint, in which an investor alleges wrongdoing on the part of a broker, but has no specific dispute with that broker, for which the investor seeks damages.


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