Stock Loss Lawyers

Investors should be able to trust their financial advisors and firms to always keep their best interests in mind. However, when that trust is broken and the investor suffers significant losses, they have the right to seek compensation.

In many cases, investors are unaware of their right to sound financial advice and actions from brokers and firms. Therefore, it is imperative to seek representation from skilled stock loss attorneys. That’s where the team of experienced lawyers at Oakes & Fosher, LLC, can help.

The Financial Industry Regulatory Authority (FINRA) protects investors and holds irresponsible brokers liable for their actions. Our seasoned lawyers understand the difference between general market decline and broker misconduct, and will do everything in their power to help wronged investors receive the money they deserve. If you believe you have suffered significant losses due to broker misconduct, we will fight for you.

Stockbroker FraudLaws Protecting InvestorsWhat To Do Following Stock LossCONTACT US

Types of Stockbroker Fraud

There are several common actions that stock brokers take when committing wrongdoing. Below are red flags that could signify misrepresentation or fraud:

  • You see significant drops in invested stock value in a short amount of time
  • You are paying capital gains taxes while your account value is rapidly decreasing
  • Charges appear on your account statements that you did not authorize
  • Your broker no longer returns your phone calls

When committing stock market fraud, a broker can perform one or a combination of the following actions without your permission:

  • Churning: Also known as excessive trading, churning occurs when a stock broker trades your accounts numerous times (more than 4 times in a year). Due to the fact that a broker earns commission, excessively trading your accounts allows them to make more money while you suffer losses.
  • Negligence: Although more difficult to prove than other forms of stock broker misconduct, negligence occurs when a broker fails to supervise your accounts or improperly selects your securities. This action results in losses that could have been prevented had the broker dedicated time to your investments.
  • Unsuitability: Your financial advisor should always make decisions and provide advice that align with your goals. When a broker knowingly advises you to invest in a stock that does not meet your objectives, leading to significant losses as a result, they have wronged you and need to be held accountable.
  • Use of Excessive Margin: The term “buying on margin” means that an investor takes out a loan from the broker’s firm in order to purchase more securities. The goal is to have a large enough return on investment to cover both the interest and the cost of new stocks. However, if your loan remains outstanding and you are advised to continue investing, your broker can make more money. If they fail to explain this risk to you, they should be held liable.
  • Unauthorized Trading: When your stock broker performs trades without your knowledge or permission and you lose on your investment, they have violated FINRA regulation.
  • Selling Away: Sometimes stock brokers sell securities that their firm does not offer in order to make extra money. However, doing so places your investment at a significant risk, and major losses can occur.

We understand that the various types of stock broker misconduct can become overwhelming and difficult to navigate. Our highly qualified stock loss lawyers will guide you through the entire process, as well as educate you on your rights and protections.

Laws Protecting Investors

Just as investors possess the right to sound financial advice, so too are they protected by a variety of laws that were created following the Great Depression. The government’s goal both then and now is to ensure everyone has the right to fair trade. The laws include:

  • Securities Act of 1933: This law requires that investors be given relevant and detailed information about every security offered. In addition, it prohibits fraud in the sale of securities.
  • Securities Exchange Act of 1934: The U.S. Securities Exchange Commission (SEC) was created through this law. The organization oversees, regulates, and registers all brokerages, firms, clearing agencies, transfer agents, and self-regulatory organizations (SROs).
  • Investment Company Act & Investment Advisors Act of 1940: These laws regulate investment firms and their advisors to provide transparency for investors, as well as minimize conflicts of interest.
  • Sarbanes-Oxley Act of 2002: This law was designed to enhance financial disclosures and protect investors from misleading corporate accounting actions.

Our stock loss lawyers are knowledgeable in all aspects of securities law, and will use their protections to your benefit. Our main goal is to recompense a fair amount of your losses.

What to Do Following Stock Loss

As soon as you believe your significant losses are due to stock broker misconduct, contact a stock loss attorney at Oakes & Fosher, LLC. They will assist you in determining whether you have a case, as well as guide you through the process of seeking compensation. We specialize in representing investors through FINRA arbitration, so rest assured that your case is in good hands.

Seeking Arbitration

As an alternative to court, FINRA arbitration expedites the amount of time it takes to resolve your case and can be much less expensive. However, once arbitration begins, you cannot take your case to court or file for appeal.

The first step in the process is filing a statement of claim against your stock broker. Once the FINRA receives the complaint, they will review your case and set a hearing date. Depending on the complexity and scope of your case, a single arbitrator (mediator) or panel of three will be present.

At the hearing, both parties will present their arguments, as well as have witnesses testify on their behalf. It is critical to have lawyer representation during arbitration, as they will be knowledgeable and present strategies that will strengthen your case. Once both sides have stated their case, the arbitrator(s) will review the evidence to determine whether you are entitled to repayment as well as how much you should be awarded. Sometimes, the process takes over a year to resolve.

Experienced Stock Loss Lawyers Fighting for You

At Oakes & Fosher, LLC, we understand the complexities involved in stock broker fraud. No investor deserves to simply accept their losses and resume life as they know it. Our extensive array of knowledge and hundreds of successful cases give us an advantage in fighting for your compensation.

When you choose the stock loss attorneys of Oakes & Fosher, LLC, you receive a team of experienced lawyers and paralegals that know the best ways to recover damages incurred. We also offer our expert opinion and advice in determining whether you have a case through a free and confidential evaluation. Don’t let your fraudulent stock broker take advantage of your investments – complete our online form or give us a call today to get started.