Stock Losses: Blaming the Broker

It's a sure bet that when stocks go down, lawsuits against investment advisers go up. But are you right to blame your broker? Let's find out.

When if comes to cars, retired mechanic Jacob Froess knows exactly what to do. But when it comes to investing? He has no idea how to look under the hood.

“I don’t know anything about the stock market… I never paid any attention to that stuff.”
-Jacob Froess, Retired Mechanic

That’s why he avoided the stock market…or thought he did. But last year he went to his bank to renew a CD, and ended up in stocks anyway… And that’s why Jake hired a lawyer.

“Jacob understood and wanted a CD. He did not want and did not understand the recommendation that was made to him, and that was the basis for the alleged claim.”
-Mark Tepper, Securities Lawyer

So brokers aren’t to blame if you lose money. Just if they don’t explain the facts… or recommend things that are too risky for your situation.

“If your broker doesn’t tell you the full story, or tells you false information or your broker recommends something for you that isn’t right for you, then the broker has engaged in misconduct.”
-Mark Tepper, Securities Lawyer

As for Jake, the jury is still out. He’s hoping his case settles before he goes all the way to arbitration. But in any case, he’s certainly learned a valuable lesson.

“I’ll be very careful how I manage my money and who I listen to or trust ever again. So that nothing like this would ever happen again to me.”
-Jacob Froess, Retired Mechanic

Bottom line? Just because a good market goes bad doesn’t mean you get to blame the broker. But if you weren’t fairly treated… you were lied to… you were put in an investment that wasn’t suitable… there’s nothing wrong with talking to a lawyer, and maybe you should.

Trending Stories

New! Solutions to Common Financial Struggles for People 50 and Older

New! Solutions to Common Financial Struggles for People 50 and Older

We've partnered with the largest nonprofit consumer counseling agency in the country to offer solutions to the most common financial struggles facing seniors including Medicare assistance, debt and budget counseling, Social Security maximization, help with paying bills, reverse mortgage counseling and foreclosure prevention.

How to Cut the Cable TV Cord in 2017

Watch This: How to Spot a Liar

17 Places You Can (Legally) Download or Stream Free Movies and TV

Comments

1,675 Active Deals

More Deals