Articles Posted in Securities Fraud

ADR abuseInvesting in international assets is a great way to diversify and strengthen your portfolio. A healthy assortment of international security assets can set you up for long term success and aid your investments in weathering market volatility. Investing in internationally-based assets is made possible through the use of American Depositary Receipts (ADRs).

An ADR is a security that represents shares of non-U.S. companies that are held by a U.S. depositary bank outside the United States. They allow you to invest in non-U.S. companies as well as provide non-U.S. companies easier access to the U.S. capital markets. Currently, there are more than 2,000 ADRs available which represent shares of companies in more than 70 countries.

While ADRs present new avenues and opportunities available to you, they – as with any security – are not without risks. As an investor, you need to perform the necessary research and due diligence on an ADR-represented security prior to investing.

The stock market is a volatile ecosystem at the best of times. Some years, investors lose trillions of dollars. At other times, the majority of investors turn a profit.

Part of the confusion is due to the complexity of the stock market. Investing in stocks has always been a specialist’s endeavor, requiring an understanding of both individual industries and the greater economy. This specialization makes rocket science seem simple in comparison in today’s rapidly shifting economy.

Are you wondering what forces are at work that causes even expert traders to lose money in the stock market? Today we’ll be focusing on securities fraud and the impact they have on the stock market.

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If you’re an investor, you know that you’re managing risks every day — no matter how you slice it.

When it comes to playing the stock market or dealing with other such high-powered investments, you’ll need the assistance of a lawyer that can watch out for your legal interests.

Whether you need another set of eyes or feel that you have a lawsuit on your hands, hiring the help of a securities attorney can give you just what you need.

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As nearly half of all Americans own no stocks at all, one of the reasons for that is that there are so many complicated laws surrounding their finance.

If your stockbroker breaks securities law, you have the right to sue. However, if you don’t know the first thing about the law, you could end up not getting the money you deserve.

Here are the four main steps to suing your broker.

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market manipulationYou know that the factors affecting an investment’s valuation go behind standard data and metrics. Often, an investment’s value can hinge largely on highly subjective factors, like public perception. The “reputation” of an asset or security can either signal an attractive investment opportunity or drive away investors.

You’ve probably heard of pump and dump schemes; a form of stock manipulation wherein essential information about an asset may be misrepresented or misreported in order to artificially drive-up its value before the scammer dumps their shares. In these types of schemes, fraudsters create a buy frenzy by promoting a stock as a desirable investment.

Well there’s also an inverse to this type of investment fraud and it’s called a short and distort scam.

Regardless of your investing experience, nobody knows everything there is to know about stock and securities trading. That’s why you have probably enlisted the help of an investment professional, either as a sounding-board for investment decisions or to assist you in facilitating and completing transactions. An investment advisor or a broker-dealer can be a great asset as you build and diversify your portfolio.

However, for all the good they can do, an investment advisor who does not have your best investment interests at heart can pose a serious risk to the health and stability of your portfolio.

How well do you know your investment advisor?

When you hire a stockbroker, you’re trusting them with your investment future. So when you suspect that your broker is scamming your account, you want to deal with the problem as soon as possible.

There are a number of ways to help recover your losses after securities fraud, but first, you need to know what your broker is doing to your account.

Here, we’re covering churning, the various types, anti-churning rules, and signs that your broker is churning your account.

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When you entrust the the management of your investment portfolio to a broker, that’s a big deal. If you are going to ask someone to assist you in managing your financial future, you are going to want to know that they have your best investment interests at heart. The relationship between you and your broker should be entirely founded on trust, honesty and transparency. And for many broker/investor relationships, that is true.

Unfortunately, we find that isn’t always the case.

Obviously, selecting a broker is no simple task; you don’t just pick a name out of the phone book and go with them. Finding the right broker takes research and due diligence. You want to know that your broker is properly registered and in good standing.

As an investor, risks are things you have to take into account. Before every investment decision, you need to assess potential risks and recognize ways to mitigate them. While its true that some securities and assets may have more associated risks than others, there is one they all share: the risk of fraud.

However, while you may be able to account for fraud risks, sometimes they can prove tough to disarm and avoid. Even the shrewdest of investors have been victimized by investment scams. The fact is, fraud can be tricky. Scammers have a lot of tools in their arsenal to dupe investors and, unfortunately, they can be quite cunning.

That’s why investment losses happen.

The Fiduciary Rule is Dead! Long Live the Fiduciary Rule!

Well… it didn’t get quite such a commemorative send-off. In fact, it got the sort of ignominious sentence fit for a mongrel animal or a disowned family member. Yes, the Department of Labor (DOL)’s fiduciary rule is dead and it doesn’t look like we’ll be seeing anything resembling a revival.

If you have not been following, the demise of the fiduciary rule follows a months-long saga that has gripped the investment industry. If you have been following but you’re a little lost, that’s okay. The events leading to the recent outcome have been full of so many twists and turns it’s easy to lose the trail.

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