Collecting damages from brokers for investment losses will be more difficult, even in cases of excessive trading (or "churning"). A May, 1985 ruling, Dean Witter Reynolds v. Byrd, allows such claims to be arbitrated by the stock exchanges and the National Association of Securities Dealers, with compensation allowed for actual losses only. Churning has always been hard to prove anyway, since excessive trading for one investor is ofter acceptable for another.
*Source: Forbes, 60 Fifth Ave., New York 10011
