Category: Stockbroker Misconduct

Dealing with Stockbroker Misrepresentation in the Stock Market

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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.

Which Types of Annuities Should You Invest In?

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When it comes to investing, your stockbroker may encourage you to think about annuities as a part of your investment portfolio. Annuities can be a great investment if you find one suited to your current and future needs.

The Two Types of Annuities

Understanding how different types of annuities work can save you a lot of trouble down the line, so we have provided you with the two types of annuities to invest in along with a description of each.

1. Deferred Annuity: A deferred annuity invests your money for a period of time before allowing you to begin taking withdrawals, generally in retirement.

2. Immediate Annuity: An immediate annuity provides for payments shortly after making your initial investment.

There are benefits to both types, and your broker can help you determine which one is best for you. For example, a deferred annuity, if managed properly, should continue to grow during the investment period and provide larger payments. Immediate annuities might be better suited for those closer to retiring, who need access to cash at an earlier stage.

Within these two types are several subcategories, and understanding the differences can be critical. For example, annuities can either be fixed (setting interest levels for payment at one rate), variable (your payment amount may be tied to the performance of underlying investments) or a combination of both.

Your stockbroker should advise you fully of the risks before any investment, and make sure that the type of annuity is in line with your goals. If you live on a fixed income, for example, investing in a variable annuity may be troublesome if it fails to perform as expected, or if you are given bad advice about the nature of the investment.

Were You Not Fully Informed on the Different Types of Annuities?

If you invested in an annuity and suffered a loss because you were not given the right information about your investment, or if your investment did not fit your risk profile, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles investment attorney as soon as possible to discuss your rights.

What are the Responsibilities of a Stock Broker?

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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.