Investors generally want their investments to grow. In order to make sure they you are picking the right investment vehicle or product, investors often rely on the advice of professional stockbrokers or brokerage firms.
Your broker has an obligation to provide full and fair disclosure of all material information when recommending and selling a security to you. This means you should be made aware of the potential risks and rewards, and make sure the investment fits within your investment profile and risk tolerance.
A broker or brokerage firm making a securities recommendation has an obligation to be honest and fully forthcoming, even if some of the information isn’t favorable. Brokers and brokerage firms must disclose all material information about the company, its principals, and the nature of the investment that any reasonable person would want to know in order to make an informed investment decision.
How to Recognize Stockbroker Misrepresentation
If a broker or brokerage firm tells you about the positives but fails to disclose negatives, this is an omission. If a broker or the firm misleads you about the nature or risks about a security, then this is a misrepresentation. Omissions and misrepresentations violate securities industry rules and are in violation of brokers’ and brokerage firms’ legal obligations owed to investors.
Call a Los Angeles Stockbroker Misrepresentation Attorney Today
If you lost money after your broker or brokerage firm misrepresented an investment or failed to disclose material information about an investment, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stock attorney today for a consultation to discuss your rights and options.