Mississippi Overconcentration Lawyers

SSEK Mississippi Overconcentration Lawyers Are Representing Magnolia State Investors Against Brokers and Investment Advisers

From our Gulfport, MS securities law offices, Shepherd Smith Edwards and Kantas (investorlawyers.com) represents Mississippi investors who sustained losses because of excessive concentration in their brokerage accounts. Overconcentration is a common problem that may have been avoided were it not for the poor, careless, or fraudulent decisions made by a financial advisor.

If you suspect that your losses may be due to a failure to diversify, you could have grounds for pursuing a Mississippi concentration claim against your broker-dealer. To explore your legal options, contact our Gulfport, MS overconcentration attorneys to set up your free, no obligation case assessment.

What Is Overconcentration and Why Can It Be So High-Risk for Mississippi Investors?

Overconcentration is what happens when a financial advisor highly concentrates a customer’s assets in one security, asset group, investment type, or industry sector to such an extreme that it exposes the investor to an unsuitable degree of risk. This concentration risk might otherwise have been avoided if only the financial advisor had properly diversified the client’s portfolio instead.

Diversifying a portfolio with different kinds of investments, asset classes, or industries can help manage the risk of loss so that in the event one type of product fails, the rest of the customer’s assets are not as affected because they were invested elsewhere. Unfortunately, concentration and overconcentration happen more than it should.

For example, a financial advisor might become enamored with the latest “hot” product—especially if it will pay them high commissions—and purchase too much of it on behalf of an investor. A broker might also start off properly diversifying a customer’s account but then fail to periodically review the portfolio as time passes to make sure overconcentration hasn’t occurred as the market changes.

There have also been instances in which an account looks like it has been properly diversified when, in fact, the investments in a portfolio are too similar or connected to one another.

Also, sometimes concentration is a viable strategy agreed upon by both the broker and an experienced investor. However, if misrepresentations and omissions occurred and the financial advisor failed to fully apprise the customer of the risks or ensure that they were sophisticated enough to comprehend the risks they were taking on, the investor may be able to sue for your investment losses.

 Why Do You Need To Work With Experienced Gulfport, Mississippi Concentration Investment Loss Recovery Attorneys?

Pursuing damages from a broker-dealer can be difficult no matter what, which is why this is not something you should try to do without skilled securities representation by your side. Shepherd Smith Edwards and Kantas Mississippi Overconcentration Lawyers know how to identify when overconcentration has occurred and this warrants pursuing an investor lawsuit against your financial advisor.

Many of the investors we have represented over the years have been the victim of concentration. Our clients include retail investors who ended up unaware that their savings had been placed in too many illiquid, high-risk investments and their accounts were not properly diversified. We also have successfully worked with accredited investors, wealthy investors, and institutional investors who suffered unnecessary losses because of unsuitable concentration by their financial advisors.

To pursue financial recovery, you will have to make your claim in FINRA arbitration, which is where disputes are brought. Our Mississippi concentration attorneys know how to build a solid case on your behalf to maximize your chances for a full recovery.

Many of us are former brokers who quit that industry because we did not like the bad practices we saw that led to excessive concentration, unsuitability, unauthorized trading, churning, selling away, and other broker misconduct that led to investor losses. It is why we chose to become securities lawyers committed to fighting for investors and protecting their legal rights.

Contact Our Gulfport Overconcentration Law Firm To Schedule Your Free Case Consultation: 

Call (228) 206-2493 or (800) 259-9010 or fill out this online form.

Our Mississippi Securities Law Office:

2118 18th St #100
Gulfport, MS 39501