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Simple English definitions for legal terms

Securities dispute resolution: Deciding whether to file an arbitration claim

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A quick definition of Securities dispute resolution: Deciding whether to file an arbitration claim:

When people invest their money, they often have to sign a paper saying that if they have a problem with their broker, they have to go to arbitration instead of court. This means that they have to talk to a person who will make a decision about who is right and who is wrong. Before they decide to do this, they need to think about a few things. First, it can be expensive to go to arbitration. There are many fees that have to be paid, and it can cost a lot of money to hire a lawyer or an expert to help. Second, even though arbitration is private, people might have to tell the other side things that they don't want anyone else to know. Third, it can take a long time to go through the arbitration process. Finally, even if someone wins, they might not be able to get their money back if the broker doesn't have any money. Most of the time, people settle their problems before they go to arbitration, but sometimes they have to go through with it.

A more thorough explanation:

When investors open investment accounts with brokers, they are often required to sign arbitration agreements. This means that any disputes with their broker must be submitted to arbitration. Before filing an arbitration claim, investors should consider various factors and perform a cost-benefit analysis.

There are four important factors to consider before filing an arbitration claim:

  1. Costs: The costs of arbitration can be prohibitive for small claims. The Financial Industry Regulatory Authority (FINRA) imposes various fees that must be paid to start and continue the arbitration process. These fees include filing fees, injunctive claim fees, hearing session fees, adjournment fees, amended claim fees, hearing process fees, respondent fees, and arbitrator compensation fees. Parties should also consider costs related to legal assistance by their attorneys and the hiring of experts to substantiate their claims. If the costs far exceed the relief sought, the party may choose to use negotiation or mediation processes for the settlement of the dispute.
  2. Privacy: While arbitration is a confidential process, parties may be forced to reveal private information to the other side. This information may not only relate to the finances of the parties or the disputed event, but also to criminal records, family relations, and many other issues that may be disputed in front of the arbitrators.
  3. Duration: Parties must decide whether they are willing to wait through the arbitration process. Arbitration cases vary in their length. When a case settles, it commonly takes just over a year. When parties proceed to a hearing, their case typically takes about sixteen (16) months. Simplified decisions are often reached in less than a year. The arbitration process, however, is generally quicker than litigating the case in court.
  4. Likelihood of Recovery: A party should consider the ability of the other party to pay if relief is granted. If the broker or brokerage firm goes out of business or declares bankruptcy, the claimant may not be able to recover even if they received a favorable award.

While costs associated with these factors may be high, parties should understand that about 80% of arbitration cases end with a settlement between the parties either through direct negotiation or through mediation. Settlement is not guaranteed. Before arbitrators decide on cases, about 10% of the cases are withdrawn or closed without settlement by the parties or through mediation. Customers were awarded damages in about 43% of cases, though it is unknown what percentage of their losses are recovered.

For example, if an investor believes that their broker has engaged in fraudulent activity, they may consider filing an arbitration claim. However, they should first consider the costs of the arbitration process, the privacy implications of revealing private information, the duration of the process, and the likelihood of recovery if they win the case.

Securities Dispute Resolution | Securities dispute resolution: Deliberation, awards, and fees.

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1a2b3c4d26z
14:45
how is everyone doing this fine friday
1a2b3c4d26z
14:46
Tonight im going to go for a run and lift some weights and then eat some dinner (probably a burrito) and then I'm going to watch a scary movie with my girlfriend (probably Longlegs). I'm so excited :)
1a2b3c4d26z
14:46
What is everyone else doing tonight
1a2b3c4d26z
14:47
Besides YM of course
14:47
Yoooo I’m a lifter too
14:47
I'm all good, I'm tipsy in Zanzibar finishing an app and laughing my ass off to this:
babycat
14:48
renard what are you drinking?
BulbasaurNoLikeCardio
14:50
Feeling like sad drinking tonight, wife accidentally tossed out my truck keys and those are expensive as fuck to replace. The crappiest part is that the key chain had the "remove before flight" tab from my first aircraft's rocket pods overseas from 6 years ago. Then find out people fucked around and back dated reports at work making me look like a shit bag so I am working later tonight and missing range time which is my weekly relax/me time. Add in my sleep meds stopped working, so I am thinking vodka (so I stay skinny and hot) and pizza by the fireplace kind of friday.
1a2b3c4d26z
14:51
Renard if you're not drinking margs Im gonna throw hands
14:51
Was at a restaurant and they decided to have me try something called "Double Kick" free of charge, it's like a sugar cane liquor with pineapple flavor
1a2b3c4d26z
14:51
missing range time :(
1a2b3c4d26z
14:52
That sounds good renard but unfortunately I'll still have to throw hands
Tonight I’m Having a date with this guy who asked me out couple times
BulbasaurNoLikeCardio
14:54
What made you give in and go out after he asked a couple times?
Other failed dates
babycat
14:55
That’ll do it
Question, how many of u would sleep on first date
babycat
14:57
honestly my answer is it depends
babycat
14:57
there has to be a very specific vibe to make me want to do that. not like a regular date
babycat
14:59
and sometimes you want to and you still don’t do ir
babycat
14:59
it
babycat
15:00
but I don’t use dating apps so all my first dates are with people I’ve already met in some context, which it sounds like is your situation too
Dkk
15:00
I could never imagine myself doing that on a first date.
Dkk
15:01
@BulbasaurNoLikeCardio: hope things get better
babycat
15:01
@Dkk: what if it’s someone you’ve known for a long time but never dated?
Dkk
15:03
Maybe but things would have to go like perfectly. I could not imagine them going perfectly.
15:04
Sleeping on the first date just isn't my style, idk. I take things painfully slowly and much prefer to befriend and really get to know a girl first before doing any of that
Ok another question, what do u tell the ppl u sleeping with already that ur going on dates
Dkk
15:05
The bigger issue is if I sleep with them will I have the emotional connection to finish cus it is harder for me to finish if I do not know the person.
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