Glossary of Terms

A process in which an investor files a claim for recovery of lost investment funds against a broker or brokerage company. The claim may settle or proceed to a hearing before a three-member panel of arbitrators.

A broker's act of turning over an investor's account in excessive sizes or frequencies solely for the purpose of generating commissions.

Eligibility Period
A period of time determined by law in which an investor can file a claim in an arbitration forum after the investor discovers that he or she has a claim to pursue. The length of the eligibility period varies according to the particular case.

Failure to Supervise
This occurs when a brokerage firm fails to supervise its individual brokers and its recommendations to investors to ensure compliance with and prevent violations of the rules of the securities industry.

Fiduciary Duty
The highest standard of care a broker owes to an investor client, based on the level of trust and confidence in the broker's expertise.

A breach by the broker of his duty of good faith not to misrepresent any "material" fact - a fact that addresses the nature or quality of the investment or the degree of risk involved - to the investor in the sale or recommendation of an investment.

National Association of Securities Dealers Registration (NASDR/NASD)
The National Association of Securities Dealers Registration is a company of the National Association of Securities Dealers. The NASDR/NASD are national organizations regulating the securities industry for the benefit and protection of investors.

Similar to a misrepresentation, an omission occurs when a broker has failed altogether to disclose a fact material to the investor's decision-making process.

This is the failure by a broker to diversify an investor's portfolio to provide protection against a decline in value of one particular investment.

State (Ohio) Division of Securities
A state level organization that oversees the securities industry. The Ohio Division of Securities is responsible for providing investor protection and enhancing capital formation by administering and enforcing Ohio's securities laws.

Statutes of Limitations
Periods of time defined by state law in which an investor can file a formal securities fraud lawsuit in a court of law after the investor discovers that he or she has a claim to pursue. The length of the statute of limitations period varies according to the particular case.

Unauthorized Trading
A broker who buys or sells securities in an investor's account without the prior consent of the investor has engaged in unauthorized trading.

If a broker recommends an investment not in alignment with the investor's financial situation, investment goals and objectives, future needs, and risk tolerance, the broker may be held liable for losses from an unsuitable recommendation.

Contact Us Today

Awards & Memberships

  • Super Lawyers
  • Million Dollar Advocates Forum
  • AV Peer Review Rated
  • AVVO Rating 10.0 Superb
  • AVVO Rating 10.0 Superb
  • Best Law Firms 2019
  • Meyer Wilson Best Lawyers 2020

This website is Attorney Advertising. The content of this site contains opinions and, unless stated otherwise, there have been no findings of civil liability, regulatory violations or guilt against the financial services firms, companies or investment representatives referenced herein. Nothing on this site should be considered as specific legal advice; rather, the content is for informational and educational purposes only. By visiting this website you understand that there is no attorney client relationship between you and Meyer Wilson Co. It is also important to understand that prior results to not guarantee a similar outcome in any other case. Please visit our law firm’s website,, for office locations and lawyer license admissions. Meyer Wilson, Co. is a Legal Professional Association.