Providing Legal Services for Claims Including
If your broker makes inappropriate investment recommendations based on your age, income, investment objectives and/or risk tolerance, then you may be the victim of something called “unsuitability.”
If a broker breaches their duty and makes unsuitable recommendations for a client, the broker may be liable to that client. Click here to learn more about Suitability Claims.
A broker must obtain client permission before making a trade on the day the transaction occurs. If not, the transaction is unauthorized. Laws explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary account. However, there are certain exceptions, such as with margin requirements, where a broker may take appropriate actions without consulting the customer beforehand.
Unauthorized trading violates just and equitable principles of trade and constitutes securities law violations due to its fraudulent nature. Click here to learn more about Unauthorized Trading.
Securities fraud, also known as stock fraud or investment fraud, is a deceptive practice in the stock markets that induces investors to make purchase or sale decisions based on false information, frequently resulting in losses, in violation of securities laws.
Investors are protected against fraudulent securities activities by several different civil laws. Click here to learn more about Securities Fraud.
CHURNING (EXCESSIVE TRADING)
Excessive trading, or “churning,” occurs when a broker buys and sells securities in an account to generate commissions, placing his own interests ahead of his customers. Although churning often occurs by trading stocks, churning can also occur by short-term trading in mutual funds, bonds or annuities.
Investors are protected against fraudulent securities activities by several different civil laws. Click here to learn more about Churning.