Articles<title><META NAME="DESCRIPTION" CONTENT="Articles"><META NAME="KEYWORDS" CONTENT="Articles"><link href="css/style.css" rel="stylesheet" type="text/css" /> </head> <body> <script type="text/javascript" src="js/jquery.min.js"></script> <script type="text/javascript" src="js/fadeslideshow.js"> </script> <script type="text/javascript"> var mygallery=new fadeSlideShow({ wrapperid: "fadeshow1", //ID of blank DIV on page to house Slideshow dimensions: [910, 246], //width/height of gallery in pixels. Should reflect dimensions of largest image imagearray: [ ["images/banner1.jpg" ], ["images/banner2.jpg"], ["images/banner3.jpg"], ["images/banner4.jpg"], ["images/banner5.jpg"], ["images/banner6.jpg"] //<--no trailing comma after very last image element! ], displaymode: {type:'auto', pause:2500, cycles:0, wraparound:false}, persist: false, //remember last viewed slide and recall within same session? fadeduration: 1500, //transition duration (milliseconds) descreveal: "ondemand", togglerid: "" }) </script> <div id="warp"> <div id="header-bg"> <div id="contaner"> <div id="header"> <div id="header-top"> <a href="mailto:info@savagelaw.us"><img src="images/header-email.jpg" border="0" alt="Header email image of Savage Law, Business lawyer Florida"/></a> <h1>The Savage Law Firm, <span style="font-size:18px;">PA Tampa, Florida</span></h1> <div style="height: 12px;"></div> <p class="pa">A Professional Association</p> <span class="phone">813-251-4890</span><span class="ESQ">Robert Savage, ESQ</span> <div class="clear"></div> <div id="nav"> <ul> <li><a href="index.shtml" >Home </a></li> <li><a href='OurAttorneys.shtml' >Our Attorneys</a></li><li><a href='ArticlesFAQs.shtml' >Articles/FAQ’s</a></li><li><a href='ContactUs.shtml' >Contact Us</a></li><li><a href='Resources.shtml' >Resources</a></li><li><a href='Mediation.shtml' >Mediation</a></li></ul> </div> </div> <div class="clear"></div> <div id="banner"> <div id="fadeshow1" style="_margin-top: -3px; "></div> </div> <img src="images/bottom-banner.jpg" alt="Bottom banner image of Savage Law, Stock Loss Lawyer"/> </div><div id="content2"> <div id="leftnav"> <ul> <li><a href='PracticeAreaOverview.shtml'>Practice Area Overview</a></li><li><a href='FacilitatingForeclosures.shtml'>Facilitating Foreclosures</a></li><li><a href='Negligence-Fraud.shtml'>Stockbroker Misconduct</a></li><li><a href='Stockbroker-Brokerage.shtml'>Stockbroker Representation</a></li><li><a href='Business-Consulting.shtml'>Business Services</a></li><li><a href='Mediation.shtml'>Mediation</a></li><li><a href='Overview.shtml'>Business Dispute Resolution</a></li><li><a href="calendar.php?month=9&year=2010">Calendar </a></li> <li><a href="/blog">Blog </a></li> </ul> <div style="height: 15px; "></div> <center><a href="http://www.avvo.com/attorneys/33602-fl-robert-savage-1285709.html?cm_mmc=Avvo-_-Avvo_Badge-_-Micro-_-1285709" target="_blank" style="margin: 10px 0px 0px opx;"><img alt="Avvo - Rate your Lawyer. Get Free Legal Advice." src="http://assets1.avvo.com/images/microbadge.png?1267488232" border="0" /></a></center> </div><div id="right"> <h1>Articles</h1><p style='margin-left:50px;'><p align="center"><font size="2"><strong>What Could My Stockbroker Have Done Wrong? - Some of the common reasons your broker may owe you money - Part 2.</strong></font></p> <p>The following is a continuation of some of the possible things that could cause you to sue your broker for mishandling your account.</p> <p>6. <strong><u>Abusing Margin</u></strong>. Margin accounts can cause many problems because when you use a margin account, you are borrowing money to pay for a stock purchase. The use of margin significantly increases the risk you are taking because if your margin account requires you to deposit more money, you may be in the situation where you lose MORE than you invested.</p> <p>Many margin related problems arise because the broker may not have properly and fully informed you of the risk and the costs associated with borrowing money to purchase an investment. Other times the issue may be that your broker failed to even tell you that your account was being put on margin and your investments were being put at risk as collateral for a loan. You may only become aware of a margin problem after you start receiving 'margin calls' to deposit money or fully paid for securities in order to prevent securities from being 'sold out' of your account to cover the margin call.</p> <p>You may want to consult an attorney familiar with these types of claims to sue your broker if he or she did not fully explain your margin account to you or if your broker opened a margin account without your knowledge.</p> <p>7. <strong><u>Breach of a Fiduciary Duty</u></strong>. The fiduciary duty owed by your broker to you is one of utmost loyalty to you as a customer, and to always put your investment interests ahead of the brokerage firm and his or her own investment interests. The fiduciary relationship arises out of the fact that the broker is in a position of trust and confidence. The fiduciary duty requires the broker to:</p> <p>1. recommend a stock only after studying it sufficiently to become informed of its nature, price, and financial condition and prognosis,</p> <p>2. carry out the client's orders promptly and in a manner best suited to serve the customer's interests,</p> <p>3. inform the client of the risks involved in buying and selling a particular security,</p> <p>4. refrain from self-dealing or refusing to disclose any personal interest the broker might have with a particular recommended security,</p> <p>5. not misrepresent any material fact related to the transaction,</p> <p>6. transact business only after receiving prior authorization from the client.</p> <p>If you think that your broker did not meet these obligations, you might have a strong case to bring when you sue your broker.</p> <p>8. <strong><u>Failure to Diversify</u></strong>. Did your account contain mostly internet or technology stocks? Or perhaps mostly aggressive growth small cap mutual funds? If a large portion of your account is made up of a single type or closely related types of stocks or other investments, you might have a valid 'failure to diversify' claim against your broker.</p> <p>The proper amount of diversification for you depends on your total financial situation and what you told your broker you wanted to do with your account. Thus, a failure to diversify claim is dependent upon the facts of your situation. Even if your account once was very concentrated but has since become more diversified, your earlier lack of diversification may give rise to a claim seeking for losses in your account.</p> <p>If your broker failed to recommend that you properly diversify your account, you may want to sue your broker.</p> <p>9. <strong><u>Failure to supervise</u>. </strong>Federal securities laws, NASD, and New York Stock Exchange (NYSE) rules require a brokerage firm to properly and adequately supervise its brokers to prevent violations of the securities industry's rules and regulations. A brokerage firm's failure to do so may result in the firm's liability for the broker's actions.</p> <p>In order to adequately supervise its brokers, a brokerage firm must have supervisory and compliance rules and procedures in place. Further, the firm must also effectively implement and enforce those compliance rules and procedures. If your broker engaged in an unlawful activity and the firm did not adequately address the situation, then the brokerage firm may also be liable for losses in your account.</p> <p>10. <strong><u>Forgery and Fabrication</u></strong>. There is no defense to forgery. In some instances a broker will complete and sign an account form on behalf of a client, without consulting the client or permitting the client to review the account information. In either of these situations, the broker's conduct constitutes forgery and gives rise to a claim by the client to recover losses.</p> <p>11. <strong><u>Improper Trading of Mutual Fund Shares</u></strong>. If your broker recommended that you sell mutual funds that you had held for only a few years, you may have a claim against your broker for the improper trading of mutual funds. The improper trading of mutual funds is a prohibited practice because mutual funds are designed as long-term investments and your broker was paid a large commission on the purchase. Further, you also pay significant fees known as a 'contingent deferred sales charge' (CDSC) if you sold class-B shares within five years of their purchase.</p> <p>Unfortunately, there are those stockbrokers who treat mutual fund shares as common stock and who recommend to clients that they switch mutual funds without properly considering the issue of the additional costs associated with most mutual fund switches. Some brokers recommend a mutual fund switch to generate commissions for themselves rather than because the trade is in your best interest, which is unlawful.</p> <p>If your broker convinced you to buy and sell mutual funds in your account, especially if they were Class B shares, he or she may have been mismanaging your account. In this instance you may have a good chance of recovering losses fromyour broker and your broker's firm for losses associated with the mutual fund trading in your account.</p> <p>If you believe your broker and/or investment advisor has engaged in any of the misconduct set forth above, or if you have any other concerns related to your investment account, you should contact an attorney with the Savage Law Firm, P.A. to discuss whether you want to sue your broker.</p></p> </div> </div> <div class="clear"> </div> <div id="main"></div> <div class="clear"> </div> <img src="images/savage-farm.jpg" alt="Savage-farm image of Business attorney Florida" /> <div id="bottom"> <p>We have a local, regional and national practice. Within Florida, we represent many clients in the Tampa area, including people in Hillsborough County, Pinellas County, Pasco County, Sarasota County, Manatee County, Lee County, Tampa Bay, St. Petersburg, Clearwater, Sarasota, Largo, Palm Harbor, Dunedin, Temple Terrace, Oldsmar, Brandon, Plant City, St. Pete Beach, Madeira Beach, Treasure Island, Safety Harbor, Tarpon Springs, Sun City, Bellair, Bellair Beach, Bellair Bluffs and Carrollwood.</p> </div> <div class="blue"></div> <div id="footer"> <p><a href="index.shtml">Home Page</a> | <a href='ArticlesFAQs.shtml'>Articles/FAQ’s</a> | <a href='ContactUs.shtml'>Contact Us</a> | <a href='Resources.shtml'>Resources</a> | <a href='Mediation.shtml'>Mediation</a> | <a href="http://www.savagelaw.us/">Business Lawyer Florida</a> | <a href="http://www.savagelaw.us/">Stock Fraud Lawyer</a> | <a href="http://www.savagelaw.us/">Business Attorney Florida</a> | <a href="http://www.savagelaw.us/Stockbroker-Brokerage.shtml">Stock Loss Lawyer</a> | <a href="http://www.savagelaw.us/Stockbroker-Brokerage.shtml">Florida Stock Loss Lawyer</a> | <a href="http://www.savagelaw.us/Negligence-Fraud.shtml">Florida Stock Fraud Lawyer</a> | <a href="http://www.savagelaw.us/Negligence-Fraud.shtml">Tampa Stock Fraud Lawyer</a> | <a href="http://www.savagelaw.us/Negligence-Fraud.shtml">Stock Fraud Attorney Florida</a> | <a href="http://www.savagelaw.us/Business-Consulting.shtml">Business Lawyer Tampa</a> | <a href="http://www.savagelaw.us/Business-Consulting.shtml">Business Lawyer Petersburg</a> </p> </div>  <div class="blue"></div> <p class="copy">All rights reseved by : The Savage Law Firm, Copyright 2009</p> </div> </div> </div><script type="text/javascript"> var gaJsHost = (("https:" == document.location.protocol) ? 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