When a stockbroker invests in stocks for a client, he or she is expected to follow certain laws and recommend suitable investments.
There are several elements that constitute a suitable investment.
If a stockbroker fails to recommend suitable investments for their clients, they are guilty of stockbroker fraud or negligence.
For an investment to be a success, the stockbroker must match the investor with stocks that fit within their income level, age, and risk factors.
Choosing suitable investments is at the core basis of a stockbroker’s job. But, when a stockbroker takes a client’s investing options into their own hands, they are acting fraudulently.
It is imperative that an investor continually reviews all statements regarding their investment activities, so that they have full knowledge of how their money is being handled.
It is especially important that senior citizens monitor the activity of their stocks since the majority of their retirement savings are tied up in stocks. Fraudulent activity by commission hungry stockbrokers can wipe out the savings and investments that seniors need to live out their lives.
There is often a time limit on when a claim can be filed if fraudulent activity is detected.
A consultation with an attorney is important to determine if there are grounds for a legal claim.