Churning

Churning occurs when a stockbroker trades a client's account excessively in order to boost his or her commission. Churning is illegal and can cause clients to lose money. By unethically putting their own interests ahead of their clients, stockbrokers guilty of churning may engage in poorly timed or badly researched trades. Clients are also forced to pay extra fees and pay higher taxes. Churning constitutes a NASD (National Association of Securities Dealers) Fair Practice Rules violation. Please contact us if you believe you are a victim of churning.

Trading without Permission

Unauthorized trades on a client's account are illegal. Brokers do not have the freedom or luxury of making clients' activities in secret or against their wishes -- even if they believe they will help the client in doing so. This includes both buying and selling stock on behalf of a client against his or her will. Please contact us if your broker has made trades on your account without your permission.

Conflict of Interest

Conflicts of interest in securities firms have been a source of many recent fines and lawsuits. Most securities firms house both investment banking and stock analysis businesses, setting up a potential conflict of interest. When a firm provides stock analysis for its own investment banking clients or for companies whose business it hopes to secure, the potential for bias is great. Analysts may feel pressure to rate such stocks highly, even if they are not expected to perform well. Competitors of investment banking clients may be rated lower than they deserve to be if the securities firm is out to appease its own clients. Misleading stock reports created because of conflicts of interest can hurt investors. Investors may lose large sums of money because of the deceptive information they receive. If you have lost money due to conflict of interest or want to learn more about the subject, please contact us today.

Insider Information

Unfair and illegal, insider trading refers to a situation in which a person with special information about a company's plans and dealings uses his knowledge to make trades. Although lucrative for the offender, insider trading can unnaturally alter stock prices and hurt outside investors. Insider trading can be a temptation for directors, CEOs, brokers, stock analysts, investment bankers, and company employees. Family members or friends "tipped off" by such people may also be guilty. If you believe that you have lost money due to someone's insider trading, please contact us today.

Ineptitude or Malpractice?

Professionals in many fields are expected to provide their services according to a certain standard. Malpractice occurs when, because they do not, resulting harm affects the person the professional was supposed to be helping. Brokerage malpractice happens when a stockbroker or stock analyst provides investors with grossly inaccurate, deceptive, unfounded, or misleading information. Whether from ineptitude, self-interest, or malice, such mistakes can cause investors to lose money. In some cases, the brokerage firm employing the guilty party may bear legal liability. If you have been a victim of ineptitude or malpractice, please contact our securities fraud lawyers in Georgia today.

Risky Investments

Risk is inherent in all investments, but some stocks have greater potential for losses than others. In general, the term "risky investments" refers to stock that may yield high returns, but that also has a higher possibility of dramatic or total losses. Examples of risky investments include buying on margin and investing in start-ups. Because of the possibility for significant losses, stockbrokers have the responsibility to explain the dangers involved in risky investments, only allowing investors to proceed if they are able to cope with the worst-case scenario. If you were misled into a making a risky investment, please contact our securities fraud lawyers in Georgia today.

Misrepresentation

Misrepresentation is an illegal practice in which a securities firm or stock broker intentionally provides clients with incorrect or unfounded information for its own benefit. Misrepresentation can also occur if true information is withheld. For example, if a firm knows that a company's stock is likely to fall but continues to rate it highly (e.g. Enron), the firm may be guilty of misrepresentation. Misrepresentation hurts investors by allowing or encouraging them to buy stocks that are going to drop in value. If you have lost money because of misrepresentation, please contact Childers, Buck & Schlueter today.

Do you believe that you have been the victim of securities fraud or stock fraud in Georgia? Contact the stock fraud lawyers of Childers, Buck & Schlueter for legal help today.