When Is There A Need For Securities Attorneys?

2007-03-08 10:33:40

( Legal )



Securities attorneys are needed when fraud or any misconduct has been discovered on the part of an investment advisor or stockbroker. Securities attorneys can also defend your company when funds are lost as a result of the negligence of your stockbroker or investment advisor. When a case is filed, any losses that were incurred as a result of the fraudulent activity may be recovered.
You need the services of a securities fraud lawyer in the following circumstances:

Securities lawyers are required when there is sufficient proof that churning has taken place. Churning is the act committed by investment advisors to gain unnecessary commissions from engaging in excessive trading. Securities attorneys have a way of discovering whether churning has taken place by making certain financial calculations.

Securities lawyers can also be appointed to defend your side when a misrepresentation or disclosure occurs. Nondisclosure happens when the broker fails to inform you about the risks that are involved when making a particular investment. Misrepresentation on the other hand happens when the broker gives misleading or untrue information on certain investments.

It is the duty of the broker to study an investor’s portfolio to see the client’s experience on investment risks, tax considerations and the like. Securities attorneys can assist when your investment advisor makes unsuitable recommendations on particular investments. Unsuitable recommendations include making investments when the client does not have enough financial capacity to afford the said investment.

A broker can also be sued if too much of the same type of stock is invested into the investor’s portfolio. A broker must make diversified investments. Lack of diversification can lead to substantial losses if the broker only focuses on a particular stock. A broker can be held liable as a result of this act.

If you feel that there has been some fraudulent activity on your investments, you should seek the services of a securities lawyer. Securities attorneys can be easily found advertised on the Internet, and your local phone directory. The selection of a good securities lawyer is important to ensure a strong defense on your case.


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