Investors lose money on the stock market and through poor investments every day. But when these losses are caused by the negligent or gross misconduct of your stockbroker, filing a FINRA arbitration claim may be the best way to get your money back. Continue reading to learn more about the most common types of investment and stock losses that can be recovered if you choose to pursue such a claim.
Unsuitable Investments
Unsuitable investments are those that do not align with the investor’s objectives and goals as discussed in their investment portfolio. For example, if an elderly woman obtained a life insurance settlement after her husband passed away and her broker then took her money and invested it without her approval in an annuity or other high-risk investment, this could be a violation of FINRA suitability requirements.
Churning
Also known as excessive trading, churning happens when a stockbroker who has the authority to make transactions without consulting the investor first can generate significant commissions for themselves and their firm when executing excessive, needless, and unsuitable transactions in the investor’s accounts.
Generally, this can be prevented by requiring your broker to discuss any transactions with you and not giving them discretionary authority.
Unauthorized Trading
Unless a stockbroker has been granted discretionary authority, every transaction through your accounts needs to be approved by you before it can go through. However, that doesn’t stop crooked brokers from engaging in unauthorized transactions in the hopes of earning higher commissions for themselves, without regard for how it might impact your investment accounts in the long run.
Get Help from an Investment Loss Attorney
To learn more about whether you have a case against the brokerage firm, stockbroker, or financial planning corporation that wronged you, contact an experienced investment loss lawyer at Wolper Law Firm, P.A..
We are proud to provide wronged investors with a complimentary consultation so we can learn more about the individual details of their investment loss cases. To schedule yours, simply submit the secure contact form provided below or call our office at 800.931.8452.
Attorney Matthew Wolper
Matt 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.
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