What Is Arbitration?Whether you know it or not, you agreed to submit any dispute with your broker to a binding arbitration panel. Arbitration of broker/dealer disputes has long been used as an alternative to the courts because it is a prompt and inexpensive means of resolving complicated issues. There are certain laws governing the conduct of an arbitration proceeding that must be considered by those planning to use arbitration to resolve the dispute. Most importantly, perhaps, is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should recognize, too, that in choosing arbitration as a means of resolving a dispute, they generally give up their right to pursue the matter through the courts.
The reality is, the stock market is risky. There are no guarantees in the market. However, very often accounts are mishandled by the broker or brokerage. The mishandling of your account can cause you to lose significant value in your portfolio. To make matters worse, when you complain, the brokerage's position is usually, "Well we can't control the market. You understood the risks involved, it is not our fault."
A closer inspection of your account might reveal it was not the market that caused your losses, but rather the mishandling of your account. Remember, if you lost money because of the mishandling of your account, you have a right to seek full reimbursement for your losses. Some of the most common types of problems are listed above. If you think your account has been mishandled, you should know your rights and contact Brewer and Carlson today.