Not every investment loss signals an investment scam or constitutes fraud, and it’s important to understand the difference between what is illegal and what’s just plain bad luck. For example, many investors suffer losses when an investment performs poorly because of:
- Changes in consumer demand
- An overall downward shift in the market
- Rumors about the issuer’s financial stability
- The effects of current news and political events
- Natural, short-term fluctuations in the market
All of the above reasons are examples of the natural and normal risks that are inherent in investing. As an investor, it’s important that you understand the risks specific to your investment before you hand over your cash and that you’re prepared to withstand those losses if your luck turns bad. However, if you believe that your stockbroker made unrealistic promises, left out important information, made unauthorized transactions, or otherwise put his or her interests above your own, then you may have a case for fraud or misconduct.
If you have experienced losses and believe financial fraud or investment misconduct is involved, please get in contact with an experienced stockbroker fraud attorney as soon as possible to talk about your situation and potential for loss recovery. The investment fraud lawyers with Meyer Wilson have helped hundreds of harmed investors across the nation, and we have the knowledge, skills, experience, and resources to help you if you suspect you are the victim of fraud. Just give us a call today if you need help.