Investing in the stock market is risky no matter how minimal the loss you’ve been promised—and that’s just the risk you take as an investor.
However, not all losses are par for the course, and when your stock losses were due to the improper behavior of your stockbroker, you have the right to seek repayment for this loss. Below, we go into greater detail about what is considered broker misconduct and how to go about seeking the compensation that is rightfully yours.
Stockbroker Misconduct, Explained
Financial advisors, stockbrokers, financial planning institutions and brokerage firms are all in the business of selling you an investment so that the broker can then turn around and make a commission. With this in mind, most types of stockbroker misconduct occur so that the broker can further their own financial goals or those of their company.
As such, when a financial planner engages in any of the following actions, as well as many more, you may be a victim of a stock loss, as the broker is doing anything and everything they can to achieve their profits without regard for their clients:
- Selling away
- Making unsuitable investment recommendations
- Trading without permission
- Excessive trading
- Failure to supervise
- Mutual fund trading
- Excessive use of margin
Filing a FINRA Arbitration Request
There are a couple of different ways you can go about securing repayment for your stock market losses. Though you do have the option of going to court, most investors choose to pursue arbitration through the Financial Industry Regulatory Authority (FINRA).
This usually allows them to save money and time by having their case heard by a panel of three arbitrators who, after hearing both party’s testimony, make a decision regarding your entitlement to stock loss repayment. Your attorney will examine the circumstances of your case to determine whether a civil claim or a FINRA arbitration request is more appropriate and/or feasible in your case.
Reach Out to an Experienced Stock Market Loss Lawyer
If you are interested in recovering compensation for a stock market loss exceeding $100,000, an experienced stock loss attorney at Meissner Associates may be able to help. Come in for a free claim review so we can learn more about the details of your case. You can schedule yours by calling our office at 212-764-3100 or submitting the online contact form provided below.