Overview of The Regulatory Framework

Question 1

A faster and less expensive alternative to litigation and mediation for resolving registered securities representatives disputes related to grievances problems and claims

Answer 1

Arbitration

Question 2

The misappropriation of funds by someone who has been entrusted with safeguarding them

Answer 2

Embezzlement

Question 3

A fee paid to someone who acts as an intermediary for another party in a transaction

Answer 3

Finders fee

Question 4

A legal claim against an asset that is used to secure a loan

Answer 4

Lien

Question 5

A clause in the agreement between registered securities representatives and their employers mandating that any employment disputes will be handled through binding arbitration rather that through the court system

Answer 5

Predispute arbitration clause

Question 6

A person or organization required to answer a legal proceeding

Answer 6

Respondent

Question 7

A prohibited activity in which a broker sells securities that are not offered or overseen by their member brokerage firm

Answer 7

Selling away

Question 8

A law designed to protect employees from retaliation after reporting suspected illegal activities on the part of their employers or coworkers

Answer 8

Whistleblower statue

Question 9

The process of bringing a new security issue public

Answer 9

Underwriting