Anyone who invests in the stock market has to expect to encounter losses from time to time. Investing is never a sure thing, and when a company fails to meet performance expectations, stock prices are bound to fall. However, there is also a potential for investors to suffer a loss dues to stock broker fraud or misconduct. If you have been the victim of stock broker fraud or misconduct, you need a qualified stock market attorney.
Types of Stock Broker Misconduct
There are a variety of ways that an unscrupulous stock broker can engage in misconduct. Here are a few tactics:
- Churning \ Excessive trading: Churning refers to the practice of buying and selling excessively in order to generate extra commissions and or fees.
- Fraudulent Material Misrepresentation: Essentially, this is when the broker lies about an investment or misrepresents the facts in order to get you to agree to purchase when you wouldn’t otherwise.
- Fraudulent Material Omissions: Much like fraudulent material misrepresentation, this occurs when the broker withholds information so that you will agree to the purchase.
- Unsuitable Recommendations: Stock brokers have an obligation to get to know the needs and objectives of their clients before making investment recommendations. If he or she fails to do so, and recommends and investment that doesn’t meet the client’s needs or circumstances, it may be considered and unsuitable recommendation.
At Colling Gilbert Wright & Carter, our stock market attorneys at have decades of combined experience helping victims of dishonest stock brokers get justice. If you would like a free consultation on your case, please contact us online or by calling (407) 712-7300 today. Our FINRA attorneys represent victims of fraud throughout the United States from our Florida location.