Bob is a registered representative who recently left ABC Securities and has now registered with PDG ...

By Investopedia Staff AAA
Q:

Bob is a registered representative who recently left ABC Securities and has now registered with PDG Securities. At the time he resigned from ABC, he had unpaid commissions totaling $5,000. After repeated inquiries and several months, Bob still has not been paid, nor has he been given any definitive reasons why he hasn’t. The best mechanism through which he may attempt to recover his commissions would be:
a) Through the SEC’s mediation process.
b) By filing criminal charges in the state courts.
c) By filing for simplified arbitration under the NASD code.
d) By filing a suit in the state’s civil court system.

A:

The correct answer is c.
Monetary disputes within the securities industry are settled through the NASD Code of Arbitration, rather than by litigation. The maximum amount to be considered under Simplified Arbitration is $25,000. Larger amounts go before the full arbitration panels.


RELATED FAQS

  1. If an investor has a required rate of return of 10% on a 20-year zero ...

    The correct answer is d. The value of a zero coupon bond is the present value of the lump-sum principal payment. There is ...
  2. XYZ Corp. has an asset turnover ratio of 0.75. Because the economy is currently ...

    The correct answer is: b) Return on Assets = NI/Sales = Sales/Assets x NI/Sales
  3. At the beginning of the year, ABC Corp. began to lease a major piece of equipment ...

    The correct answer is: A) Under the capitalized lease method, the lessee must treat the asset as if it was purchased with ...
  4. Which of the following statements is (are) true with respect to the factors that ...

    The correct answer is: d) (I) is incorrect because if interest rates are expected to rise, banks will generally "increase" ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center