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3 Warning Signs of Stock Market Fraud

3 Warning Signs of Stock Market Fraud

3 Warning Signs of Stock Market Fraud | Orlando, FL AttorneyChoosing to invest a substantial amount of money in the stock market through a stockbroker is a big decision to make, and one that shouldn’t be done lightly. There are many investment firms in Florida and across the nation, and not every broker has your best interest in mind. Our attorneys specialize in stock market fraud because we know how devastating a significant loss in your investments can be. Your investment account could be your retirement plan or your nest egg to pay for college someday, so when you suspect you’ve been the victim of stockbroker fraud, it’s essential to contact an experienced attorney to handle your claim before you suffer even more financial losses.

Some of the warning signs you should look for when it comes to stock market fraud include:

  1. You’re given misleading information regarding where your funds are invested such as the omission of facts and no warning of the potential risks, liquidity or compensation these stocks could carry.
  2. Your stockbroker over concentrates your investments—One of the most important aspects to understand about investing is the need to diversify. If all your money is locked up in one area such as health care, you’re more likely to suffer big losses.
  3. Your broker is “churning” your stocks, meaning he or she is buying and selling the same stock several times to turn a fast profit and make money off the transactions.

Investment fraud carries heavy consequences, especially if you fail to realize you’re being used by the broker. When you choose a stockbroker, it’s vital to your account and livelihood that you do your due diligence and research the individual and entire investment company to make sure they make your money work for you and not the other way around.

If you suspect stock market fraud, please contact Colling Gilbert Wright & Carter in Orlando today at (407) 712-7300 for a FREE consultation. Our attorneys serve clients in Florida and nationwide.