Some investors, with the right amount of experience and knowledge, feel comfortable enough to invest their money in securities without relying on the advice or expertise of a stockbroker or brokerage firm. Most of us, on the other hand, work with a stockbroker or brokerage firm to help identify the right investments that fit our investment profiles.
The Responsibilities of a Stockbroker
First and foremost, your stockbroker works for you. Under fiduciary standards, their job is to put your interests ahead of theirs – in fact, they have a legal obligation to do so. Accordingly, the responsibilities of a stock broker include providing accurate information about the risk associated with any investment as well as the possible rewards. You should know the good and the bad – the whole picture – before actually investing.
Stockbrokers may mischaracterize or fail to mention the downside in order to get you to invest in a particular security. They may do this to generate a large commission. Your broker should have a clear understanding of your investment objectives and your risk profile, which is comprised of quite a few factors including: your age, salary or other income, income needs, tolerance to risk, and more.
Failure to meet these duties can constitute stockbroker misconduct or brokerage firm negligence and even investment fraud leaving you suffering the consequences.
Are You Questioning the Responsibilities of a Stock Broker?
If you believe you were pressured into making a bad investment, or if you suffered a loss because you were not given full disclosure regarding the security or securities, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stockbroker misconduct attorney as soon as possible to discuss your rights.