Mihalek Law A Securities Arbitration & Litigation Firm
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What is stockbroker misconduct?

Investing in the stock market can be thrilling and scary at the same time. You understand the risks of investing and have taken appropriate action to cautiously invest to keep your portfolio stable. Even though you have taken the right precautions, you have a feeling there is something wrong with your investments. 

Could that feeling be caused by broker misconduct? Nobody wants to believe there stockbroker has committed any type of misconduct but it does happen. Broker misconduct can take a significant toll on your investments and cause serious financial harm to your portfolio.

Broker misconduct can be difficult to spot. However, there are some different types of misconduct to become familiar with before it's too late. One type of misconduct is making unsuitable recommendations. An example is when your stockbroker recommends an investment that it too risky based on your needs and goals. 

Other types of misconduct include:

  • Unauthorized trading: your stockbroker cannot buy or sell securities without your authorization unless you have an agreement that specifically states it is ok for them to do so. 
  • Unauthorized accounts: your stockbroker cannot open up any type of account for you without your permission. Opening up an account without your authorization may include forgery and other misrepresentation. 
  • Sudden losses: your stockbroker should disclose all information about any recommended investments, including the risks. 

Stockbroker misconduct can wreak havoc on your investments and portfolio success. It is important to review your monthly statements for any unauthorized transactions or other types of misconduct to protect yourself and your investments. 

Our law firm has experience reviewing investments and exploring legal options for clients who believe they have suffered from stockbroker misconduct. To learn more information about how we can help, visit our signs of broker misconduct page. 

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