If you have recently discovered a significant financial loss due to the misconduct of your stockbroker or brokerage firm, you may be able to recover these losses through a FINRA arbitration hearing. However, there are very specific types of investment losses that are recoverable.
Categorized as being unsuitable investments, excessive trading, or unauthorized trading, these losses are able to be recovered when you seek a Financial Industry Regulatory Authority (FINRA) arbitration hearing with the assistance of an experienced stock loss lawyer. Continue reading to learn more about these different classifications of investment losses.
Financial advisors of any kind are obligated to make investment recommendations that align with the goals you discussed when you first began working with your stockbroker or brokerage firm. When your advisor fails to make appropriate suggestions and investments according to your objectives, the losses you incur can fall under the category of unsuitable investments, which are able to be recovered under FINRA rules.
More frequently referred to as excessive trading, churning occurs when a stockbroker makes numerous transactions beyond your investment objectives in the hopes of obtaining significant commissions.
These inappropriate transactions can generate massive commissions for the broker but will often result in substantial financial losses for the investor. If your account has been turned over more than four times annually, then your broker is more than likely churning your account, and you may be able to recover your stock losses.
You may have been a victim of unauthorized trading if your broker made trades in your account without your explicit permission to do so. By misrepresenting your accounts or not informing you of the trades that were being made, your stockbroker has likely violated U.S. Securities and Exchange Commission (SEC) and FINRA regulations and can be compelled to repay you for the losses you incurred as a result of their unauthorized trading.
Schedule Your Free Claim Evaluation Today
Getting in touch with a highly trained stock loss attorney at Meissner Associates is critical to the success of your FINRA arbitration hearing, particularly due to the stringent statute of limitations. You can schedule your free consultation today by giving our firm a call at 212-764-3100 or by completing the quick contact form we have included below.