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arbitration investment & finance definition
A
binding dispute-resolution process in which an impartial person or group of
people hear the facts and decides how the matter should be resolved.
Arbitration has the effect of a court order. Many brokerage firms require their
clients to sign agreements stating that they will use arbitration, rather than
take legal action, in the event that there is a disagreement. Stock, futures,
or options exchanges, and other
professional or regulatory associations are often involved in administering
arbitration
proceedings. Arbitration contrasts with mediation,
which isn’t binding on the parties.
See arbitration in Wall Street Words
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