What is securities arbitration law?

Securities arbitration law is a set of laws that governs how disputes involving stocks, bonds, commodities, and other financial instruments are handled. Securities arbitration is a form of alternate dispute resolution (ADR) that is available to all investors in the United States. In Oregon, the law is similar to that of other states. Securities arbitration law is designed to be more efficient than traditional civil litigation for resolving disputes between investors and their brokers. The process requires that a neutral third-party—the arbitrator—hear the case and make a binding award. These awards can include monetary damages, as well as the return of property or removal of liens. The process for initiating a securities arbitration claim is relatively simple and straightforward. It begins by filing a claim form with either the Financial Industry Regulatory Authority (FINRA) or the American Arbitration Association (AAA). After filing the form, the investor and broker will have the opportunity to present evidence and make arguments before the arbitrator. The arbitrator will then make a decision and issue an award. Securities arbitration laws protect investors from financial harm that they may suffer at the hands of brokerages and other companies. This type of law can be very beneficial in helping investors resolve disputes in a timely, cost-effective manner, without the time and expense of going to court.

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What is securities arbitration law?

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