Suitability
Needless to say, not all investments are for everybody. A stockbroker may only recommend investments that are suitable for a certain customer. In order to determine the right investment, a broker must consider, among other things, the investor's:
- Age
- Risk tolerance
- Financial knowledge
- Investment horizon
- Investment objectives
- Loss tolerance
In addition to recommending the right investment according to each investor's profile, a stockbroker must clearly disclose to his or her clients the risks an investment entails. If a broker intentionally or unintentionally fails to make these risks clear to you, he or she might be violating suitability rules, and you might be entitled to compensation.
Schedule A Free Initial Consultation Today
If you are facing a legal dispute related to your investments, it is in your interest to work with an experienced attorney who can provide you with the advice you need to reach a resolution that reflects your interests. The first step is to meet with a lawyer so you can learn more about your legal options.
To schedule an appointment with an attorney at Berg Law LLC, call us at 504-688-4402 or contact us online. From our office in New Orleans, we serve clients throughout Louisiana and beyond.