Are You The Victim of Excessive Use Of Margin?
Our Savvy Margin Abuse Attorneys May Be Able To Help
If you suffered significant losses after your broker unsuitably recommended that you borrow or buy on margin, please contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. Using a margin account to increase capital and returns is incredibly risky and unsuitable for most novice and retail investors. Depending on your financial goals, age, and risk tolerance level, it may not even be appropriate for you even if you are a wealthy investor. That said, it can also be an appropriate and very profitable investing strategy for certain sophisticated investors who can handle a high level of risk.
When you have a margin account, you have a brokerage account in which your brokerage firm has loaned you money that may be equal to the amount you deposited. This gives you, the investor, twice as much money to purchase stock. It is important to note, however, that you will eventually have to pay back the money you borrowed. Not only that, but often your broker-dealer may start charging you interest for the loan right away, which is often more than they would make in regular sales commissions. Also, when you use money from the loan to buy more securities, your broker will likely earn commissions from those transactions.
Unfortunately, many brokerage firms neglect to properly notify their clients of the risks involved with a margin account. They may even recommend you borrow on margin even though it is a poor investing strategy for you. This can lead to devastating consequences, especially for elderly retiree investors who depend on the funds in their portfolio to pay their bills.
Our Skilled Margin Abuse Attorneys Can Assess Whether You Should Sue Your Broker
If your financial advisor unsuitably recommended a margin account for you, made misrepresentations and omissions about the risks or the various fees they could earn, neglected to conduct the proper due diligence to make sure this was an appropriate investing strategy for you or breached their fiduciary duty in any way, you may be able to file a broker fraud lawsuit seeking damages.
When you work with our seasoned excessive use of margin attorneys, you are hiring one of the most well-respected securities law firms in the United States. We have represented investors from all walks of life in over 1000 matters. More than 90% of our clients have received full or partial financial recovery in arbitration, mediation, and the courts.
To schedule your free, no-obligation case consultation with our Margin Abuse Attorneys, call (800) 259-9010 today.