Finance: What is Arbitration?

What is Arbitration? Arbitration is like court for the financial world. It is used to settle disputes between investors and their brokers. An investor can file a claim that leads arbitration, much like a lawsuit would lead to a court hearing.

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Transcript

00:28

million gallon enema kind of clogged... The cost of fully adjudicating cases has

00:32

become astronomically expensive and time-consuming and filled with silly [Contract loopholes highlighted]

00:37

loopholes that make getting to a real just conclusion painful if not

00:42

impossible so it has become common practice for parties entering a

00:45

partnership or a contract in whatever form to agree to arbitration if a big

00:50

fat hairy conflict arises down the road you know...In arbitration both sides agree [A hairy monster appears in the woods]

00:55

to hiring a separate judge usually a retired judge from the normal court

00:59

system.. In arbitration

01:03

everyone simply relies on the arbitrating judge to be fair lots of [Judge stamped fair]

01:09

silly loopholes go away and "justice" in whatever form is

01:14

arrived at well hopefully faster and if that doesn't work well you can always do [Shakespear carrying a lawyer on a ship and throws him overboard]

01:18

things to Shakespeare way...