|
Stock Broker Misconduct
The
announcement of a $1.4 billion settlement between:
has
made stock broker misconduct a hot topic.
- Read
every account statement carefully.
- Put
your investment goals and instructions in writing, and give
it to the adviser. Keep copies of all communications.
- Check
references, and do business only with established companies.
- Beware
of "chasing yields." Higher yields means higher risk.
- Never
invest in anything you don't understand.
Source:
from PIABA |
Many
kinds of stock broker misconduct and stock
broker fraud can result in a law suit that may lead to a damage award.
You'll probably need a lawyer.
|
Can
you sue your stock broker?
Just
because you lost money on investments recommended by a stock broker
doesn't mean you have a legitimate claim. Here are some questions
that relate to broker fraud:
- Did
you lose some of your original principal?
- Did
the stock broker consider your investment objectives, age and
risk tolerance when making the recommendations?
- Did
the stock broker fail to disclose the risk of an investment?
- Did
the stock broker make excessive trades in the account to generate
commissions?
- Did
the stock broker make trades without your approval?
- Did
the stock broker fail to properly diversify your portfolio?
|
How
can I find a lawyer that specializes in Stock
Broker Misconduct?
The
website www.piaba.org
can help you find lawyers in your area. Arbitration lawyers usually take
cases on contingency, which means you don't have to pay a retainer and
their fee comes out of any award you receive.
|
Arbitration
Complaints
Types of arbitration cases filed by investors
|
|
2000
|
2001
|
2002
|
2003*
|
| Margin
Calls |
284
|
375
|
366
|
86
|
| Chrurning |
473
|
784
|
824
|
190
|
| Unauthorized
Trading |
611
|
884
|
930
|
206
|
| Failure
to Supervise |
1270
|
1968
|
2633
|
912
|
| Negligence |
1867
|
2275
|
2522
|
852
|
| Omission
of Facts |
476
|
692
|
1178
|
370
|
| Breach
of Fiduciary Duty |
2489
|
3458
|
4236
|
1334
|
| Unsuitability |
900
|
1524
|
2644
|
798
|
| Misrepresentation |
1321
|
1895
|
2623
|
763
|
| Online
Trading |
214
|
155
|
95
|
14
|
| *
through March 2003 Source NASD |
Learn
more about the EquiTrend™ Community
EquiTrend™
is the best money management system in the industry today. We passionately
believe that active money management
is the best way to grow and protect your precious assets.
|
|
"This
investment advice was right, now our investments
are really working for us."
Money
Management Tips
|
|
Ready
to learn more? Read these EquiTrend™
articles on money management tips:
|
|
