Over the last few years, there has been a substantial rise in the amount of illegal actions, by both independent brokers and brokerage firms, which has led to innocent investors becoming subject to both securities and stock fraud.
When we first start out in Investing in the Stock Market, the majority of us will employ a brokerage firm or broker, to act on our behalf and advise us on what is a good investment. Unfortunately, for many investors, the trust we put into our broker is abused and our money is used in high risk investments which only benefit the broker and not the investor.
There are numerous ways in which our trusted brokers can risk, or even lose, our money including withholding relevant information regarding the risks involved in the investment, churning (selling of securities to generate high commissions), and excessive trading and over concentration.
Stock fraud can easily be avoided if you are scrupulous from the beginning. Investigate the company or broker thoroughly and ask for references from previous clients if you can. Ensure you receive all paperwork regarding any investment and do not invest in any deals that you do not feel 100% comfortable with. Remember, it is a broker’s obligation to provide all paperwork involving any investment.
Keep an eye on the stock market yourself on the web and, if you are a new to the stock market, then stick to shares, stocks and the money market to be safe.
If you have been unlucky, and have become subject to stock fraud, then it is essential to employ a qualified and experienced stock fraud attorney to help you try and recover some of your loss. Hand over as much paperwork and information as you can to your attorney to enable them to recover some, if not all of your investment.
Chris bebel is an experienced attorney, based at CHRISTOPHER BEBEL, ESQ. PC900 Rockmead Drive, Suite 262, Houston, TX 77339 (281) 619-8725, specialising in both stock and securities fraud. For more sound advice on stock and securities fraud, please see fraud attorney houston
