Securities Fraud Lawyers
Unsuitable Securities Claims
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Stockbrokers must be licensed by the NASD (National Association of Securities Dealers). Consequently, they are subject to the NASD's rules. One of the fundamental rules imposed by the NASD is that stockbrokers are required to make appropriate or suitable recommendations to their customers, based on, among other things, the customers tolerance for risk. "Suitability" is determined by your education, income, net worth, age, stated investment objectives and prior investment experience. The recommendation and sale of unsuitable investments constitutes securities fraud and if it caused a financial loss, may be the basis for a securities fraud arbitration claim.
Your stockbroker may also violate the suitability rule by failing to properly diversify your investment portfolio or by concentrating too much of your portfolio in volatile, or risky securities, such as high tech stocks or junk bonds.
If you or a loved one has been harmed by stock broker or securities fraud, please call or email our experienced securities fraud lawyers today. We'll evaluate your unsuitable securities fraud claim for free and help you get the justice you deserve.
