Binding arbitration is a process that
A)allows you to appeal to FINRA or any of the organized exchanges for resolution of a complaint against your broker.
B)is used by the SEC to determine appropriate damages against a broker for unethical conduct.
C)involves hiring an attorney and suing your broker.
D)resolves a conflict between the SEC and a broker with respect to charging excessive commissions.

Question

Quizplus · Accepted Answer

Binding arbitration is a process where the parties involved agree to have their dispute resolved by a neutral third party outside of the court system. In the case of a complaint against a broker, the parties would agree to have the dispute resolved by an arbitration panel through FINRA or the organized exchanges. Option B, C, D are incorrect answers as they do not appropriately explain the process of binding arbitration.

Binding Arbitration Is a Process That