Stock Broker Fraud Law

Stock Broker Fraud

Stock Broker Fraud Law:

Stock brokers and investment professionals have a legal duty to deal with investors with a standard of care. Stock brokers are trusted to act in good faith and integrity. Stock broker fraud occurs when investment transactions are not in the best interests of the investor, but are designed to fulfill the financial goals of the stock broker. This can include biased or incomplete investment information given to the investor.

Stock Broker Fraud Legal Issues:

Stock broker fraud can destroy an investor's finances in the following ways:

  • Misrepresentation: When a stock broker does not fully disclose the risks associated with a particular investment.
  • Unsuitability: When a stock broker forces or pushes an undesirable stock on an investor, which results in financial losses for the investor.
  • Over-concentration: When a stock broker does not diversify the stock by investing in multiple areas.
  • Churning: When a stock broker makes a large number of transactions and sells stock with small gains just to show profit.

What a Lawyer can do for you:

When an investor's interests are placed secondary to the financial gain of the stock broker, it is advised to hire a business lawyer for representation. A business lawyer can help investors with many forms of stock broker fraud, such as churning, over-concentration, unsuitability and more. If you suspect stock broker fraud, a business lawyer can inform you if you are eligible to file a lawsuit or become part of a class action.

Lawyer Referral Service:

If you or someone you know is a victim of stock broker fraud, contact a business lawyer to learn about your legal options. Contact Attorney Search Network to find a business lawyer in your area.

If you have any questions about the inStart Up provided above, please contact us. Call us toll free at (800) 215-1190 or fill out out online form for your business Closing lawyer referral.

If you have any questions about the inStart Up provided above, please contact Attorney Search Network.