Rbitration ? Practicum CONFLICT RESOULTION MODULE 5

We all fall into daydreaming about investing wisely in the stock market, and reaping a windfall. But in many cases, these dreams become a nightmare, and we may lose our hard earned pennies.

In those cases, where the investor believes that he received the short end of the stick, due to his brokers fault, an attempt to sue the brokerage company, becomes a practical option.

The following two articles (see below): Caveat Investor: Complaints Against Brokers Yield Few Returns –Although Record Numbers Of Clients Are Filing Cases, Some Will Recover Nothing and Bad brokers: Dr. Maderazo fought back. So can you”, shine a light on the darker side of investing (i will upload these 2 articles)

CASE ASSIGNMENT

After carefully reading these articles, please answer (in about 3 pages), the following questions:

1) How should investors prepare for an arbitration session with the FINRA (formerly NASD) arbitrator in light of the principles of arbitration? What will the focus be on?

2) What is your opinion regarding the fact, that in most investors cases against brokers, the arbitrator is chosen by the National Association of Securities Dealers Dispute Resolution Inc., a subsidiary of the NASD (currently named FINRA)?

Note1: I am more interested in YOUR insight and understanding, and less in a summary of the articles.

Note 2: question #2 is the important part as it deals with possible bias by the neutral, so focus on it.