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 recommend the right investment according to each investor's profile, a stockbroker must clearly disclose to his/her clients the risks an investment entails. If a broker intentionally or unintentionally fails to make these risks clear to you, he/she might be violating suitability rules and you might be entitled to compensation. In that case you might need an experienced securities arbitration attorney and should call us at (504) 526-2921 or e-mail us at: kirk@reasonoverllc.com.