Whenever you invest in any security, whether it is a stock, bond, mutual fund or annuity, your broker has an obligation to provide a full and fair disclosure of material information when recommending and selling a security to you.
What Does Full and Fair Disclosure of Material Information Mean?
A broker or brokerage firm making a securities recommendation or sale 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 (including the risks of the investment) that a reasonable person would want to know in order to make an informed investment decision. 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 known as investment misrepresentation. Omissions and misrepresentations violate securities industry rules and are illegal.
Call a Los Angeles Stockbroker Lawyer Today
If you purchased or sold a security and did so based on incomplete or incorrect information provided to you by your broker or brokerage firm, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stockbroker lawyer today for a consultation regarding your rights.