Does a securities arbitration award have the same legal effect as a judgment in a court of law?

No, a securities arbitration award does not have the same legal effect as a judgment in a court of law. In New Hampshire, securities arbitration is governed by the rules contained in the New Hampshire Securities Arbitration Act. This law regulates the arbitration process by which a dispute between a customer and a broker or broker-dealer can be resolved. When an arbitration award is issued, the award is a binding settlement between the parties, and obligates the parties to comply with the terms of the award. However, unlike a judgment issued by a court of law, this binding settlement is not enforceable outside of the two parties involved. It does not carry the legal enforcement authority of a court judgment. For instance, a judgment may be used to initiate legal action against a party in a court of law, whereas an arbitration award cannot be used for this purpose. Furthermore, unlike a court judgment, an arbitration award may be overturned if either party appeals the decision. In this instance, the decision would be reviewed by an appeal court, and the judgement may be changed or reversed. Court judgements are not typically subject to such review, and are considered binding once entered. In short, securities arbitration awards differ from court judgements in that they are binding between the two parties involved, however they do not carry the same legal enforcement authority as a court judgement, nor can they be used to initiate legal action against a party.

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