We see commercials and advertising all the time, and we're used to
sales pitches that leave some details out or carefully represent a product
in its best light. However, when it comes to investing in securities,
that kind of marketing practice is frowned upon—and may be illegal.
Securities Fraud Attorneys Explain Misrepresentation
When you speak with your stockbroker or financial advisor about a potential
investment opportunity, you have a right to all the important information
associated with the investment. Your stockbroker, investment advisor,
or other financial planner is bound by law to disclose this information
to you before you hand over your cash. If a broker makes misleading statements
about an investment or fails to give you the information you need, then
it could be misrepresentation, and you could be headed for FINRA arbitration.
As securities fraud lawyers, we often see misrepresentation or omissions
in the form of:
"Guarantees." Very little is set in stone when it comes to investing in securities, and
you should be suspicious of any claims that guarantee high returns, that
an investment will definitely do well and go up, or that there is "no
Commissions and fees. Your broker or advisor is required to disclose information about fees and
commissions associated with any investment. If you were not informed of
such information, it could be considered to be misrepresentation or omission.
Performance. When looking at the performance history of an investment, be aware that
it can be easy to paint the performance in a flattering light. For example,
a non-traded REIT may report its offering price for four or five years
before an actual market value is established, so it is difficult to gauge
its actual performance. Your broker or advisor has a duty to look into
the investment and give you an accurate idea of its practical performance.
If you're not sure if you have a securities fraud claim against a stockbroker
for investment misrepresentation and/or omission, schedule a completely
free legal consultation with a highly respected securities fraud lawyer
today. We'd be happy to answer your questions about securities fraud,
FINRA arbitration, and whether you have a claim. Contact us today!
Watch our helpful video to learn more about misrepresentations and omissions.