What is stockbroker fraud?
| November 18, 2019
“ Stockbroker fraud” is a general term that covers a range of unscrupulous behaviors and misconduct on the part of a broker or brokerage firm. This may include behaviors like high-pressure sales tactics or making trades you did not authorize.
The most common types of stockbroker fraud are:
- Churning. “Churning” is the term for making an excessive number of trades on an account in order to benefit the stockbroker – not the investor. This may be difficult to spot if you’re not looking carefully because these small, frequent trades will usually show as a profit.
- Unsuitable investments. An unscrupulous broker may try to talk you into investments that don’t suit your needs or your long-term financial goals. Oftentimes, this is because a broker stands to gain commissions on these investments.
- Misrepresentation or Omission. If a broker fails to give you all the information about an investment opportunity or does not disclose certain risks, then you may have a stockbroker fraud case if you suffer investment losses.
If you believe you have suffered losses because your stockbroker acted against your best interests, take action now. Speak with an experienced investment fraud lawyer today to schedule a completely FREE legal consultation. Meyer Wilson has over 50 years of collective experience assisting wronged investors with FINRA proceedings and recovery of investment losses.
Before you invest, we encourage you to research your broker by searching their CRD number. Learn more about CRD numbers and why they are important by viewing Attorney Dave Meyer’s video below.