Although your broker has a duty to recommend investments that are suitable
for you, you should still take the time to get a good idea of your own
risk tolerance and attitude toward risk. Your risk tolerance is one of
the most important factors when considering the suitability of an investment,
and it is important that you always carefully discuss potential investment
risks with your financial professional before you decide to hand over
Determining investment risk can be complicated and nuanced, but there are
some basic concepts you should be aware of. To get started, here are three
simple things to keep in mind about investment risk and suitability:
- Higher returns come with higher risk.
- The higher the risk, the greater the chance you could lose your capital.
- You can generally withstand a higher short-term risk for long-term investments.
If you believe your broker recommended an
unsuitable investment for your risk tolerance, please speak with aninvestment misconduct lawyer for a free evaluation of your case. You can also receive a FREE copy of our book
Five Signs of Investment Fraud…And What to Do if It’s Happened to You by giving us a call or filling out the online contact form on this page.
The investment misconduct attorneys with Meyer Wilson have represented
more than 800 investors across the nation in
stockbroker mediation, arbitration, and litigation, and we look forward to putting our knowledge,
skills, and experience to work for you. If you have questions about stockbroker
misconduct, or if you need guidance, please reach out to us today.