How FINRA Arbitration Gives Firms the Upper Hand

By Robert Klasfeld In theory, the Financial Industry Regulatory Authority (FINRA) arbitration process should be a fair way to settle disputes between claimants and firms, however, in practice, the process appears to give firms the upper hand. Arbitrators vs. Jurors For starters, a typical trial is decided by a jury of one’s piers, whom tend [&hellip

Read full story Comments are closed

The Dangers of FINRA’s New Proposal Regarding Firm Supervision of Outside Business Activities

By Brooke Nelson Sam’s long time broker tells him about a special investment that is only available for the broker’s special clients. Sam invests $10,000 of his retirement savings in this special investment because he not only trusts the broker, but he trusts the broker’s firm as well. However, Sam later finds out that this [&hellip

Read full story Comments are closed

Kleptocurrency: ICO Fraud, Regulation, and Red Flags

By Cory Rosenstein-Ford In recent years, cryptocurrencies have rocketed to the forefront of financial news reporting, and established a significant presence in pop-culture. As of July 2018, the cryptocurrency market consisted of more than 1,500 cryptoassets, up from only 14 in 2013. Crypto has spawned a subculture of young investors and issuers with little interest [&hellip

Read full story Comments are closed

Are Millennials Really the Worst Generation When it Comes to Investments?

By A.J. Kim From the social media obsession to cell-phone addictions, everyone criticizes “millennials” as being the lazy, entitled, and financially unmotivated generation. Many “older” people are often quick to point fingers at this group of individuals who were born between 1981 and 1996 for their flaws and imperfections, including their lack of investments. By classifying all “incompetent” individuals under age 37 [&hellip

Read full story Comments are closed

FINRA’s First Disciplinary Action Involving a Cryptocurrency Serves as a Cautionary Tale for Investors

By Theodore O’Brien The Financial Industry Regulatory Authority (FINRA) ushered in a new era of securities regulation by filing a complaint against a Massachusetts man, charging him with fraud and the unlawful distribution of unregistered cryptocurrency securities. Cryptocurrencies like Ripple and Ether have captured the popular imagination because the underlying blockchain technology allows users to [&hellip

Read full story Comments are closed

Impact of Technology on the Financial Market

By Selene C. Vazquez The New York Stock Exchange and other exchanges have long been depicted as a “pit” where traders yell out orders at each other. This scene is portrayed as busy, loud, and hectic. However, the 125-year tradition ended in 2015. Today, much of the trading goes on without shouting (only few remain [&hellip

Read full story Comments are closed

Avoiding Surrender at All Costs: Ensuring a Variable Annuity is Suitable for You

By Ryan Yaffa What is a variable annuity anyways? A variable annuity is a contract between an investor and an insurance company, under which the insurer agrees to make periodic payments to the investor, either immediately or at some specified point in the future. An investor purchases an annuity contract either by making a single [&hellip

Read full story Comments are closed

Pump-and-Dump Schemes: From Cold Calling to Chat Rooms

By Taylor Bandy Historically, pump-and-dump schemes occurred when brokerage firms holding a large volume of stocks in a company would incentivize brokers to cold-call customers and pitch penny stocks in the company. The large number of stock sales would greatly increase the share price, then the brokerage firm would dump the stock. As a result, [&hellip

Read full story Comments are closed

Fifth Circuit Vacates DOL’s Fiduciary Rule – Repercussion for Seniors

By Daniela Pessoa Valdes On March 15, 2018 the U.S. Court of Appeals for the Fifth Circuit issued its mandate to vacate the Department of Labor’s (“DOL’s”) fiduciary rule for advisors working with retirement accounts. (Chamber of Com. of the United States v. United States DOL) This decision dealt a massive blow to the protections in [&hellip

Read full story Comments are closed

Where to Park Money and Save on Taxes

By Gray Crow Should you buy municipal bonds or permanent life insurance? The answer may depend on who you talk to and how he or she gets paid. These two products have unique tax benefits that an investor or policyholder can enjoy. They are compared below: Municipal Bond Basics: According to FINRA’s website, a municipal [&hellip

Read full story Comments are closed