In arbitration cases against securities firms, the arbitrators may award damages for losses, but may not impose punitive damages.

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Arbitrators in cases against securities firms can award both compensatory damages (for losses) and punitive damages, intended to punish and deter wrongdoing. The ability to award punitive damages depends on the rules governing the arbitration process, such as those set by the Financial Industry Regulatory Authority (FINRA).

In Arbitration Cases Against Securities Firms, the Arbitrators May Award