BrokerBuster.com
Title
Stock Broker Fraud | Phil Sever, Lawyer | Securities Arbitration
Description
The abuses outlined in this section are nothing new and have been committed by Broker after Broker, Year after Year. In response to these violations various rules have been written to protect the consumer. Some of these rules can be found below, others can be found by reviewing our Free Information, Resources and Links page. My clients always ask, "Why would any broker violate these rules?" The answer in almost every case is commissions and money.
All brokers must make recommendation that are suitable for their clients risk tolerance. The NASD, NYSE and other Self Regulating Organizations have specific rules which require your broker to make suitable recommendations based on your financial objectives, financial resources and risk tolerance. For Example: A Broker is probably making an unsuitable recommendation if he or she recommends a transfer from AAA bonds to small cap tech stocks for a retiree with a low risk tolerance. This is the most common form of stockbroker abuse. For more information see the article, Unsuitable Recommendations.
Front running may occur if your broker purchases or sells a particular security on the same day that he solicits his/her clients to purchase or sell that same security. A broker who front runs his clients position is trying to get a better execution price on his trades due to movement in the market created by his clients trades. In most cases, when a broker transacts in the same security as his clientele the broker must take the highest price or take the lowest sale on that day.
Contact
- Phil Sever
-
- Westfield IN
- United States 46074
-
- +011.3176902726
