Your stockbroker and brokerage firm have a responsibility to make recommendations and purchases that fit your financial circumstances and risk profile. By extension, they are obligated to let you know if your investments are riskier than can be reasonably expected. This might mean discussing in detail high risk products – such as Leveraged ETFs – or letting you know that a recommendation will place you at risk by over-investing in a single stock or market sector, for example.
Brokers can’t be held responsible for every single loss; the cyclic nature of all publicly traded markets ensure that there will be downs along with the ups. However, they may be responsible if you are surprised by losses that you didn’t expect and were not adequately prepared for. If you found yourself losing more than the market average in a downturn without understanding why, then you may also have a case against your broker.
The Law Office of Jared A. Rose has extensive experience fighting and winning complex cases for victims of stockbroker misconduct. Contact Us if you believe that your broker or brokerage firm failed to inform you of known risks resulting in financial losses.