When an investor loses out significantly on the stock market and their loss stems from the reckless, irresponsible, or negligent misconduct of their financial advisor or stockbroker, the investor may be able to obtain repayment for this loss when they file a FINRA arbitration claim.
Though the securities markets can be confusing, and going up against a powerful broker and/or brokerage firm can be intimidating, with an experienced investment loss law firm working for you, you’ll have confidence in your ability to be awarded the compensation you deserve.
Negligent Stockbrokers and Financial Planning Institutions
Since the stock market is always fluctuating and there are numerous factors that play into an investment’s risk, it is quite common for an investor to lose money on the stock market. However, your loss should never be caused by the actions of those you trusted to advise you financially. Misconduct in this area can take many forms, some of which include:
- Excessive use of margin
- Lack of diversification
- Failure to supervise
- Churning (a.k.a. excessive trading)
- Making unsuitable investment suggestions
- Selling away
- Unauthorized trading
What to Do if You’re a Victim of Broker Misconduct
Stockbroker misconduct and financial organizations that encourage this type of misconduct are taken very seriously, and the Financial Industry Regulatory Authority (FINRA) oversees how these types of cases are handled. When you have been taken advantage of by a profit-hungry broker, you will need to report this to FINRA and initiate a FINRA arbitration request.
This means you will have the opportunity to have your case heard by a panel of arbitrators, who will then hear the refutation of the stockbroker or financial planning institution in question before making a decision as to whether you should be repaid for your stock loss.
Get Help from a Regarded Investment Loss Law Firm
Having to deal with a cumbersome legal hearing after already having been duped by someone you trusted can be tiring, but with a qualified investment loss law firm like Meissner Associates on your side, you may be able to secure the repayment you’re entitled to with minimal inconvenience.
You can come in for a free consultation by giving our firm a call at 212-764-3100 or filling out the brief contact form we have provided at the bottom of this page.