What Is A Misrepresentation or Omission?
By: LawInfo
When you deal with a broker you expect them to tell you the honest truth about what you might be investing in. When a broker misrepresents or omits a material fact (an important fact) they could be held liable for misrepresentation or omission. The reason for this is because a broker has a duty to fairly disclose all of the risks associated with an investment.
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Additional Civil Stock Broker Fraud FAQs
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Q:
What Is Securities Fraud?
A: Generally, when a financial professional encourages a client to invest in unnecessarily risky ventures that devalue the client's assets or when the … More -
Q:
How can I tell if I`ve been a victim of a stock fraud?
A: Every case is different but when a stock has dropped, your loss may be due to fraud when Company executives misrepresented facts relating to important aspects of the … More -
Q:
What is an unsuitable recommendation?
A: When you ask your stock broker for advice, you trust that they are giving you the best information for your specific situation. However, sometimes a broker … More -
Q:
What is securities arbitration?
A: In 1987, the U.S. Supreme Court held that brokerage firms could enforce predispute arbitration clauses contained in their standard form customer agreements. … More -
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What Is Overconcentration?
A: Ever heard of the phrase "don't put all of your eggs in one basket?" Your advisor should also follow this advice, but when your financial advisor … More -
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What Is Churning?
A: Some stock brokers collect fees on every trade they make on your account. Generally, a stock broker only makes the trades they think are necessary to meet your … More -
Q:
Do I need to hire an attorney to sue my stock broker?
A: You do not have to hire an attorney to sue a stock broker, you can file a complaint yourself. However, an attorney will know what the laws and regulations of … More -
Q:
What Government Agencies Can I File A Complaint With?
A: Most states have an agency that regulates stock brokers within the state. Additionally, most stock brokers and stock purchases are governed by the SEC (the … More -
Q:
What is a failure to execute trades?
A: Usually a broker and a client will talk about the different types of investment strategies that are available to the client. Based on the clients goals, a … More -
Q:
What Is A Breach Of Fiduciary Duty?
A: A fiduciary duty is a requirement that your stock broker place your interests over their own. This doesn't mean a stock broker should fling … More
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