Investors holding preferred securities in their portfolios may have noticed drops in the investment values. If your financial advisor recommended a portfolio concentrated with preferred securities and your portfolio has incurred damages, you may be able to recover your losses. Brokers and clients may agree that the broker has a certain level of autonomy to act on behalf of the client, but if that agreement is violated, the broker has violated unauthorized trading rules.
The total losses you sustained due to the possible fraud/negligence. Investors can use the following resources to check the credentials of a broker or firm before trusting them with any money. Investors can protect themselves by keeping detailed records, learning how to read your statements and keeping close tabs on what your broker is doing. It is also not a good idea to authorize your broker for unlimited trading in your account. Your broker has over-concentrated your portfolio in one particular investment.
However, FINRA may grant financial hardship waivers when warranted. Lubiner, Schmidt & Palumbo is an experienced securities arbitration firm. We have generally represented brokerage firms and investment advisors in cases alleging negligence, fraud, misrepresentation, churning, and unsuitability – now we are ready to handle your investment fraud case. The law firm of Lubiner, Schmidt & Palumbo has earned a reputation for cost effective, aggressive, and innovative advocacy on behalf of our clients.
Also like debt investments, preferred shares offer a fixed dividend payment similar to bonds. However, like equity, preferred stock can fluctuate in value, especially when the value of the issuing firm is low. Preferred stocks are given ratings similar to bond ratings but preferred ratings are almost always lower than bond ratings because preferred securities do not have the same guarantees for interest payments.
How Can an Investment and Securities Fraud Attorney Help?
High yield junk bonds have significantly more risk than investment grade bonds. In addition, junk bonds typically move up and down with stocks and provide little or no downside protection when the stock market is declining. I think by and large most financial advisors are honest people who want to help their clients, but sometimes they make mistakes, and when they do, it’s very difficult for them to admit to it. In cases where significant investment losses occur due to the negligent or unlawful actions of a broker, advisor, or investment firm, investors have the right to sue in order to recover their investment losses.
Examples of Recoveries Weve Secured for Investors
Options are popular among speculators as they allow investors control many shares of an investment with minimal initial cash outlay. OptionsOptions are contracts that allow a purchaser to buy or sell a security, such as a stock or exchange-traded fund. Some options have unlimited upside and downside, while others can only result in losing the contract value. Certificates of Deposit – An insured deposit account that offers a predictable return at high-interest rates than savings accounts. However, investors cannot withdraw money for a set term without a penalty.
Recommending unsuitable investments that don’t match your goals and risk tolerance. “No attorney-client relationship in being created with the Meissner firm without a written agreement between the firm and the client.Emailing the Meissner firm, its attorneys or employees does not create an attorney-client relationship. Even if mediation does not result in a settlement, it can help set the stage for arbitration. However, mediation will not make sense in all cases, and, if your broker is not willing to mediate in good faith, then it can end up being a waste of time. If your stockbroker is willing to mediate in good faith, then pursuing mediation can even further reduce the amount of time it takes to achieve a resolution.
For this reason, it can be difficult to know whether your losses justify a FINRA arbitration claim. We spend nearly all of our professional time litigating investment disputes, exclusively representing investors injured by stockbrokers, investment advisors, insurance agents, and other investment professionals. suffered losses in Kiromic BioPharma stock specialize in elder financial fraud, securities mediation, commercial disputes, annuity and insurance product losses, trust and estate litigation, and more.
Regulation D allows certain investments to be exempt from these registration requirements. A fixed annuity is not tied to the market and provides steady payments at a fixed rate. On the other hand, a variable annuity would be tied to some part of the market, usually an index. Agency Securities”Agencies” is a term used to describe bonds issued or guaranteed by U.S. federal government agencies. They also describe bonds issued by government-sponsored enterprises —corporations created by Congress to foster a public purpose.
Why do so few investors file claims to recover investment loss?
Although the process may seem complex, or intimidating, we make it easier for investors. Often times investors are unaware of the abuse committed by their trusted stock broker. These kinds of stock brokers will use every tool in their arsenal to manipulate, deceive, control, and extort money from their clients. Our firm provides a FREE analysis of your brokerage account statements in order to reveal the truth of where your hard earned money is going. These types of trades can dissolve an investor’s account within months and be disguised as “market-related” losses. At Shepherd, Smith, Edwards & Kantas, LLP, our team of dedicated securities lawyers have extensive experience in helping investors who put their trust and financial security in the hands of their financial advisor and brokerage firm.