FindLaw | Find a Lawyer. Find Answers.
Are you a legal Professional?
The ABC's of Securities Litigation Claims
Risky Investments
Risky investments are made in stocks that have the potential to yield high returns, but also have a higher possibility of large losses. In fact, in the worst case scenario, all of the original investment may be lost. Responsible brokers make sure their clients understand the risk associated with their investment and only proceed if they are willing and able to cope with potential losses. Some examples of risky investments include start-ups and over buying on margin.
Trading Without Permission
Brokers must make their clients aware of their activities. They are not allowed to make trades on a client's account against the client's will.
Unsuitability
Brokers who make investment recommendations that are inappropriate to the known objectives and background of a particular investor may be subject to claims for losses based on unsuitability.
Conclusion
Although it is difficult to determine if your losses will support a securities litigation claim, trust your instincts. If you note any suspicious activity and feel you have been wronged, contact an attorney with experience in securities and investment related legal claims to discuss the specific issues affecting your investment portfolio.
FAQs
- The investment newsletters seem so thorough--what should I watch out for?
- How do I protect myself from falling into a trading trap in which the website operators promise big returns?
- Commentators on investment bulletin boards sound so knowledgeable--should I heed their advice?
The Online Q & A Forum For Securities & Commodities Disputes
Download more than 50,000 state-specific legal forms. Real estate documents, power of attorney forms, wills, employment contracts, divorce and separation agreements and much more.
Fast and friendly legal document service from LegalZoom, the #1 online legal document service
Legal Ace.com offers turn key legal documents at affordable prices for business law, incorporations, trademarks, copyrights, wills, divorce and more.