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Margin Loss Lawyer

Did your broker recommend you invest on margin? Did you suffer losses as a result of your broker’s suggestion? A lawyer dedicated to margin loss could help you get your money back. 

Brokers and financial institutions have an obligation to ensure that the investment recommendations made to investors are vetted and suitable. They also need to ensure that investors have a clear understanding of what the investment is—and the risks. When a broker fails to uphold this duty, they can be held accountable for any losses that may result.

One common cause of investment losses are margin calls. If your broker failed to inform you of the risks, you may be entitled to financial compensation. Get help filing a complaint with the Financial Industry Regulatory Authority (FINRA) by contacting a reputable margin loss lawyer at Wolper Law Firm.

What Are Margin Losses?

When you buy stock on margin, you’re essentially buying stock using a loan from your brokerage firm. Margin losses occur when the value of an investor’s stock diminishes and the financial institution issues what’s called a margin call.

When the brokerage firm issues a margin call, investors only have a limited amount of time to either make a deposit or take action to increase the value of the stock. If the investor is unable to do so, the broker-dealer can then sell the stock in order to recover the lost value. This sometimes results in catastrophic losses for investors.

Since margin calls can happen with fluctuations in financial markets, you might be wondering why someone would take the risk of buying on margin. Investors will often buy on margin in order to purchase more stock than they would normally be able to. As you can imagine, this is not always a suitable investment strategy.

If your broker suggested that you purchase stock on margin and you suffered considerable losses on a margin call, you may be entitled to full restitution. Your lawyer can help you figure out whether you have grounds for a FINRA arbitration complaint.

FINRA Arbitration for Margin Loss

FINRA arbitration is one of the best options for investors who hope to recover margin losses. Here, a panel of arbitrators will hear your case and listen to your broker defend their decisions before determining whether you should be paid restitution.

Arbitration is similar to what court would be like—with some key differences. Some of the reasons why arbitration is often favored over court proceedings include:

  • The length of the claims process
  • The ability to appeal
  • The amount of time to repay the victim
  • Arbitrators as opposed to a judge/jury

Meet with a Lawyer About Your Margin Losses

If you purchased stock on margin and suffered devastating losses, you may be entitled to restitution. Contact a respected margin loss lawyer at Wolper Law Firm to discuss the circumstances of your case. We provide complimentary consultations to wronged investors across the U.S. Take advantage of this opportunity when you call 800.931.8452 or complete the online contact form provided below.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]