Every investment opportunity comes with a risk, but what happens when you suddenly suffer significant losses due to your stockbroker’s negligence? The good news is that you can take action against your financial advisor and seek maximum recovery of the losses you endured.
Lack of portfolio diversification is one of the most common reasons an investor will endure such losses. Read on to learn more about what a lack of diversification is and how to get your money back after suffering such an investment loss.
What Is a Lack of Diversification?
Have you ever heard the phrase, “Don’t put all your eggs in one basket”? You can think of a lack of portfolio diversification as putting all your eggs in one basket. In terms of investments, this means your broker has failed to put your money into several industries or investment opportunities and instead put the majority into one or few investments or industries.
This can be devastating for an investor when that particular investment fails and they suffer significant losses. In many cases, inexperienced or negligent financial advisors fail to diversify their client’s accounts, thereby causing them to lose money.
FINRA Arbitration for Lack of Portfolio Diversification
The Financial Industry Regulatory Authority (FINRA) oversees registered stockbrokers, financial advisors, and firms. When an investor loses money due to a lack of portfolio diversification, these parties can be ordered to repay the wronged investor.
There is no excuse for negligence or incompetence when it comes to investor funds. You can seek full recovery for your losses for a lack of diversification, failure to supervise, and broker negligence when you lose money due to lack of diversification in your investment portfolio. You can discuss the FINRA arbitration process with your lawyer to learn more about what to expect next.
Get in Touch with a FINRA Arbitration Lawyer
If you are ready to take legal action against your financial advisor for lack of portfolio diversification, contact a reputable FINRA arbitration lawyer at Wolper Law Firm, P.A. to discuss the individual details of your case. Fill out the online submission form below or call 800.931.8452 to schedule a free consultation.
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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