If You Are Paying Too Much Money In Brokerage Commissions, Your Stock or Commodities Broker May Be To Blame For Generating Excessive Commissions In Your Brokerage Account.

Stock and commodities brokers are typically paid by salary, commissions on sales or transactions, or a mix of both.  Typically full-service brokers are paid mostly by commissions based on the amount of stocks, bonds, mutual funds, insurance, and other products they sell.

This means that full-service brokers often get compensated not according to how well your account or portfolio does, but by how often you trade, i.e., how much in commissions your transactions generate.  For this reason, it’s generally in your broker’s interest to have you trade as often as possible, so as to generate high commissions.  Excessive or high commissions can be the result of what’s known as broker churning.

If You Paid Too Much In Brokerage Commissions and Believe Your Stock or Commodities Broker May Be To Blame For Generating Excessive Commissions, Contact A Securities Arbitration Attorney and Broker Fraud Lawyer:

-Recover Excessive Brokerage Commissions-

Fill Out The Form On The Right For A Free Attorney Review.

If You Have Thoughts About High Brokerage Commissions, Share Your Comments About High Commissions With Others Below.

Brokerage Commissions: Are You Paying Too Much Money In Brokerage Commissions To Your Stock or Commodities Broker? is a post from: YourSecuritiesArbitrationLawyer.com

If Your Stock Broker, Stock Brokerage Firm, Financial Advisor or Investment Consultant Engaged In Stockbroker Fraud, You May Have A Stock Broker Fraud Claim.

-Report Stockbroker Fraud-

What Is Stockbroker Fraud?

Stockbroker fraud generally refers to any kind of fraud committed by a stock broker.  Stockbroker fraud can take many different forms, but is generally defined as any intentional deception made to damage another individual.  The specific legal definition of fraud varies by legal jurisdiction and type of fraud committed.  The courts have always been careful to avoid limiting fraud by devising a too rigid definition. 

Common law fraud generally has nine elements:

1. a representation of an existing fact (i.e., the  stockbroker made some sort of statemtent or assertion);
2. its materiality (i.e., the fact is material or important);
3. its falsity (i.e., the fact is not true or a lie);
4. the speaker’s knowledge of its falsity (the stockbroker knew the fact was false;
5. the speaker’s intent that it shall be acted upon by the plaintiff (the stockbroker intended you to act on the fact);
6. plaintiff’s ignorance of its falsity (i.e., you didn’t know it was false);
7. plaintiff’s reliance on the truth of the representation (i.e., you relied on the statement being true);
8. plaintiff’s right to rely upon it (i.e., you were justified in relying upon the false statement); and
9. consequent damages suffered by plaintiff (i.e., you suffered investment losses as a result).

Stockbroker fraud often occurs when investors are enticed to part with their money based on untrue statements.  Stock broker fraud can include outright theft from investors. The term also encompasses a wide range of other actions, including insider trading, front running and other illegal acts.

Did Your Financial Advisor or Investment Consultant Commit Stock Broker Fraud?

If you believe that your stockbroker committed fraud, your stockbroker may be liable to you for a stockbroker fraud claim.

-Recover Stock Broker Fraud Losses-

If Your Stock Broker, Stock Brokerage Firm, Financial Advisor or Investment Consultant Engaged In Stockbroker Fraud, Contact A Stockbroker Fraud Lawyer.

-Request A Free Review By A Stock Broker Fraud Attorney-

If You Were The Victim Of Stockbroker Fraud, Share Your Stock Broker Fraud Experiences With Other Investors Below.

Stockbroker Fraud is a post from: YourSecuritiesArbitrationLawyer.com

If Your Investment Portfolio Suffered From A Lack of Diversification And You Believe Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Is To Blame For Failing to Diversify Your Assets, You May Have An Overconcentration Claim Against Your Broker.

-Report Overconcentration, Failure to Diversify or A Lack Of Diversification-

Diversification is a strategy for managing a portfolio to limit investment risk. Instead of all the investments being concentrated in one asset class (i.e., stocks, bonds, commodities, real estate, etc.), market sector (technology, health care, financials, energy, retail, etc), industry, company or security, investments are diversified among a variety of asset classes, market and industry sectors and types of securities and companies. 

 When an investment portfolio is over concentrated in a particular asset class, security, type of security, industry sector, or company, the risk of loss in the investment account is increased.  Diversifying your investments can protect you from losses if a particular asset class, company or economic sector turns sour. 

Many portfolios are not properly diversified and therefore are taking on excessive risk.  Was your investment portfolio properly diversified?

-Recover Your Investment Losses Due To Overconcentration, Failure to Diversify or Lack Of Diversification-

If You Believe That Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Failed To Diversify Your Investment Portfolio, Recommended A Bad Mix Of Assets, Or Overconcentrated Your Money In A Particular Sector, Industry or Company, Contact A Securities Arbitration Lawyer.

-Request A Free Review By A Securities & Investment Attorney-

If You Had An Undiversified Investment Portfolio, Share Your Overconcentration Experiences and Stories With Other Investors Below. 

Overconcentration | Failure to Diversify | Lack Of Diversification is a post from: YourSecuritiesArbitrationLawyer.com

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Misrepresented or Falsely Stated Material Facts To You Concerning Your Investments, You May Have A False Statement or Misrepresentation Claim Against Your Broker.

-Report Misrepresentations and False Statements-

What Are Misrepresentations and False Statements?

A false statement or misrepresentation is a statement or representation that is not true, misleads or creates a false impression.  Misrepresentations and false statements are prohibited under federal and state securities statutes.  Securities laws prohibit brokers from making false representations of material facts in connection with the purchase or sale of securities.  

False statements and misrepresentations might include, among other things, guaranties (i.e., guaranteeing customers that they will not lose money on a particular securities transaction), making specific price predictions, giving phony “hot tips,”  agreeing to share in any losses in the customer’s account, or representing special or inside information regarding an important contract, approval, earnings announcement or other newsworthy event.   Such misrepresentations or false statements might also disguise the risk associated with a particular investment. 

Did Your Broker Mispresent or Falsely State Material Facts Concerning Your Account or Investments?

When a broker tells you something important about a security or anything in connection with the security (or the underlying company or issuer) that is untrue or makes any other false statement in connection with the sale of an investment that is not true that broker may be liable for misrepresentation. 

Failure to provide factually accurate and complete information about a recommended investment or providing information in a misleading manner can be the basis for  a securities arbitration claim.  If you believe that your broker made misrepresentations or false statements to you regarding your investments, your broker may be liable to you for a false statement or misrepresentation claim.

-Recover Investment Losses From Misrepresentations and False Statements-

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Misrepresented or Falsely Stated or Represented Material Facts Concerning Investments In Your Account, Contact A Securities Arbitration Lawyer.

-Request A Free Review By A Securities & Investment Attorney-

If You Were The Victim Of A False Statement, Share Your Misrepresentation Experiences With Other Investors Below.

Misrepresentations or False Statements is a post from: YourSecuritiesArbitrationLawyer.com

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Failed To Disclose or Omitted Material Facts Concerning Your Investments, You May Have A Failure To Disclose, Omission or Nondisclosure Claim Against Your Broker.

-Report Losses Due To A Failure To Disclose, Omission or Nondisclosure-

What Is A Failure to Disclose, Omission and Nondisclosure Claim?

State and federal securities laws generally prohibit brokers from failing to dislose, concealing or omitting material facts in connection with the purchase or sale of securities.  A broker is generally required to fully disclose all known risks associated with a particular investment or security.  

A failure to disclose or omission might include, for example, failing to dislose to investors all fees, commissions or other charges related to an investment.  Or it might include a broker’s failing to reveal important information about a company that an investor needs to know in order to decide whether or not to invest in that company.

If you believe that your broker failed to disclose, concealed, or omitted important facts regarding your investments, your broker may be liable to you for an omission or nondisclosure fraud claim.

-Recover Losses Due To Omissions, Failures to Disclose and Nondisclosures-

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Failed To Disclose Material Facts About The Investments In Your Account, Contact A Securities Fraud Lawyer.

-Contact A Securities Fraud Attorney-

If You Were The Victim Of An Omission or Nondisclosure, Share Your Failure to Disclose Experiences With Other Investors Below.

Do You Have A Failure to Disclose or Omissions Claim Against Your Broker or Brokerage Firm? is a post from: YourSecuritiesArbitrationLawyer.com

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Engaged In Ponzi Scheme, Pyramid Scheme or Other Fraudulent Investment Scheme, You May Have A Fraud Claim Against Your Broker.

-Report A Ponzi, Pyramid or Other Fraudulent Scheme-

What is A Ponzi Scheme?

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.  A Ponzi scheme is fraudulent investment scheme in which money contributed by later investors generates artificially high dividends for the original investors, creating an illusion of profitability, thus attracting new investors and investments. Money from the new investors is used directly to repay or pay interest to earlier investors, without any operation or revenue-producing activity other than the continual raising of new funds.

Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out. The Ponzi scheme takes its name from Charles Ponzi, who in the late 1920s was convicted for fraudulent schemes he conducted in Boston.

According to the Securities and Exchange Commission (“SEC”), many Ponzi schemes share common characteristics and warning signs, including:

• High investment returns with little or no risk. Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. Be highly suspicious of any “guaranteed” investment opportunity.
• Overly consistent returns. Investments tend to go up and down over time, especially those seeking high returns. Be suspect of an investment that continues to generate regular, positive returns regardless of overall market conditions.
• Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the SEC or with state regulators. Registration is important because it provides investors with access to key information about the company’s management, products, services, and finances.
• Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
• Secretive and/or complex strategies. Avoiding investments you don’t understand or for which you can’t get complete information is a good rule of thumb.
• Issues with paperwork. Ignore excuses regarding why you can’t review information about an investment in writing, and always read an investment’s prospectus or disclosure statement carefully before you invest. Also, account statement errors may be a sign that funds are not being invested as promised.
• Difficulty receiving payments. Be suspicious if you don’t receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters sometimes encourage participants to “roll over” promised payments by offering even higher investment returns.

What is A Pyramid Scheme?

A pyramid scheme is a form of fraud similar to a Ponzi scheme, relying on an illusion of an extremely high rate of return based on attracting new investors and investments. In the classic pyramid scheme, participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

But despite their claims to have legitimate investments, products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money.

Why These Fraudulent Schemes Inevitably Fail?

In both Ponzi schemes and pyramid schemes, an increasing number of new investors are required to keep the schemes afloat.  Unfortunately, the supply of subsequent investors is eventually exhausted and the fraudulent scheme collapses, with the later investors typically losing all of the money that they invested, and only the earliest investors, if any at all, having recovered their investments.  Ponzi schemes and pyramid schemes typically always end in disaster.

If you believe that your broker has invested your assets in a Ponzi scheme, pyramid scheme or other fraudulent investment scheme, your broker may be liable to you for a fraud claim.

-Recover Ponzi, Pyramid And Other Fraudulent Scheme Losses-

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Engaged In A Ponzi Scheme, Pyramid Scheme or Other Fraudulent Investment Scheme, Contact A Securities Arbitration Lawyer.

-Request A Free Review By A Securities & Investment Attorney-

If You Were The Victim Of A Ponzi Scheme, Pyramid Scheme or Other Fraudulent Scheme, Share Your Experiences With Other Investors Below.

Do You Have A Ponzi Scheme, Pyramid Scheme and Other Fraudulent Scheme Claim Against Your Broker or Brokerage Firm? is a post from: YourSecuritiesArbitrationLawyer.com

If You Lost Money In Any Stock, Bond, Mutual Fund, Hedge Fund, Futures or Option Contract or Other Investment Because of a Broker or Brokerage Firm Conflict of Interest, You May Be Entitled To Recover Your Investment Losses. 

A team of securities lawyers and investment attorneys is investigating claims of investment losses suffered by investors, shareholders, stockholders, bondholders, mutual fund holders, commodities and futures traders, option traders, hedge fund investors, among others, due to their broker’s, brokerage firm’s, financial advisor’s or investment consultant’s conflict of interest.

Broker and Brokerage Firm Conflicts of Interest

The majority of stockbrokers, futures brokers, options brokers and other financial brokers work on a commission basis, and thus, there is an inherent conflict of interest that exists between an investors needs and a broker’s commission income.

Unfortunately, because of this conflict of interest, broker or brokerage firm may give advice or recommendations based not on what is best for the investor client, but on what is best for the broker or brokerage firm.

In addition, many brokerage firms have relationships with a limited number of investment companies which may lead to a conflict of interest. Instead of providing an investor client with an investment recommendations and advice that is in the best interests of the investor, the broker or brokerage firm may give advice limited by their relationships with other companies. Thus, a stockbroker’s recommendation may be based more on what they can offer you through their firm than what is best for you.

If You Lost Money In Stocks, Bonds, Mutual Funds, Futures, Options, Foreign Exchange or Other Securities, Financial Assets or Investments Due To A Conflict of Interest, You May Be Able To Recover Money.

-Recover Investment Losses Due To A Conflict of Interest-

Do You Have A Conflict of Interest Claim Against Your Broker or Brokerage Firm? is a post from: YourSecuritiesArbitrationLawyer.com

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Engaged In Improper Margin Practices or Failed To Disclose Risks Of Trading on Margin, You May Have An Improper Use or Disclosure of Margin Claim Against Your Broker.

-Report Improper Margin Practices Or Margin Disclosures-

Did Your Broker or Financial Advisor Explain How Margin Works?

Margin is collateral that the holder of a position in securities, options, or futures contracts has to deposit to cover the credit risk of his counterparty (most often his broker).  The collateral can be in the form of cash or securities, and it is deposited in a margin account.  With a margin account, investors borrow money from a brokerage firm to purchase securities.  The portion of the purchase price that must be deposited is called margin and is the initial equity or value in the account.  The loan from the securities firm is secured by the securities purchased. 

What is A Margin Call?

If the securities the investor is using as collateral go down in price, the broker can issue a margin call, i.e., a demand that the investor repay all or part of the loan with cash, a deposit of securities from outside the account, or by selling securities in the account.

Does Margin Cost  Money?

Buying stocks and other securities on margin carries a cost. This cost is the interest you will pay on the amount you borrow until it is repaid. Margin interest rates generally vary based on the current “broker call rate” or “call money rate” and the amount you borrow. 

Is Your Broker Profiting From Your Use Of Margin?

Margin loans can yield high profits for your broker or brokerage firm. Your broker may receive fees based on the amount of your margin loans, including a percentage of the margin interest you pay on an ongoing basis.

Margin Trading Can be Risky Business.  Did Your Broker Advise You Of The Risks of Using Margin?

Investors generally use margin to leverage their investments and increase their purchasing power.  At the same time, investors who trade securities on margin have the potential for higher losses.  Margin magnifies gains as well as losses.  As a result, there are additional risks involved with trading on margin that your broker or brokerage firm must disclose to you. 

The risks in using margin or in margin trading include, among other things, the following:

• Trading securities on margin brings with it the potential for higher losses.
• You can lose more funds than you deposit in the margin account. A decline in the value of securities or
  futures contracts that are purchased on margin may require you to provide additional funds or you
  must put up margin to avoid the forced sale of those securities or futures contracts or other assets in
  your account(s).
• Your broker may force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements, or if your broker has higher “house” requirements, your broker may sell the securities or futures contracts or other assets in any of your accounts held at the brokerage firm to cover the margin deficiency. You also may be responsible for any shortfall in the account after such a forced sale.
• Your broker may sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case.  Brokers generally will not issue margin calls and may immediately sell your securities or futures contracts without notice to you in the event that your account has insufficient margin.
• You are not entitled to choose which securities or futures contracts or other assets in your account(s) are
  liquidated or sold to meet a margin call. Your broker has the right to decide which positions to sell in order to protect its interests.
• Your broker can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice. These changes in firm margin policy often take effect immediately. Your failure to maintain adequate margin in the event of an increased margin rate generally will cause your broker to liquidate  or sell securities or futures contracts in your account(s).
• If your broker chooses to issue a margin call rather than immediately liquidating undermargined positions, you are not entitled to an extension of time on the margin call.

Your broker should advise you of these risks and all others related to trading securities on margin. Your broker should make clear all the risks involved with trading on margin.

If you have suffered financial loss or damages because of your brokers improper use of margin or lack of disclosure of margin risks you may be able to recover your losses from your stockbroker or brokerage firm.

-Recover Losses From The Improper Use of Margin Or Disclosure Of Margin Risks-

If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Improperly Used Margin In Your Account Or Failed To Properly Disclose The Risks Of Using Margin, Contact A Securities Arbitration Lawyer.

-Request A Free Review By A Securities & Investment Attorney-

If You Were The Victim Of Improper Margin Practices or Disclosures, Share Your Experiences With Other Investors Below.

Do You Have An Improper Use Of Margin or Disclosure Of Margin Risks Claim Against Your Broker or Brokerage Firm? is a post from: YourSecuritiesArbitrationLawyer.com