How Do I Know if My Broker Is Selling Away?

Stockbrokers earn a living by making commission on their investors’ trades and transactions. Therefore, it is in a stockbrokers best financial interests to do everything they can to get their investors to making trades and transactions.

However, there are many ways a broker can cross the line in this regard and begin committing fraud or engaging in misconduct. One of these is a practice known as selling away. Continue reading to learn more about what selling away is and how you can tell whether your broker is selling away in your accounts.

What Is Selling Away?

When you work with your financial advisor or stockbroker, their firm has certain products that are available, or held, by the firm. These holdings are registered and are not necessarily less risky, but they are usually not fraudulent.

When a broker is selling away, they are selling securities that are not held or offered by the brokerage firm. Although not every investment that is sold away is fraudulent or unregistered, a significant amount are, and selling away is both a violation of a brokerage firm’s compliance procedures and a securities violation.

Red Flags to Watch Out For

Unfortunately, it may be difficult to know whether the investment in question is offered by the brokerage firm unless you check with the brokerage firm’s products before agreeing to the investment.

If your broker suggests that you make a purchase quickly, that the risk is minimal and the returns will be high, or if the investment seems too good to be true, chances are, the holdings are not offered by the firm, and the broker is selling away.

Get Help from a Securities Arbitration Lawyer

If your broker has been selling away in your accounts and you lost money due to their misconduct, you may be entitled to financial compensation. Reach out to an experienced securities arbitration lawyer at Wolper Law Firm, P.A. to learn more. Fill out the convenient contact form included below or call us at 800.931.8452 to schedule a free, no-obligation consultation.

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]