We are living in a fascinating time where the stock market is exploding. In 2019, the growth of the market was absolutely stunning:
- the Dow 30 jumped 22%
- the S&P 500 gained 29%
- and NASDAQ rose 35%
In this booming market, working with financial investors is the traditional method for taking part in the stock market. People from all walks of life count on their financial advisor to be responsible, accountable, and act in their best interests.
But not everyone who puts money in the stock market benefited from this banner year of earnings. And it may not be the fault of the investor. At a time when so many investors are finding huge gains in their portfolios, others wonder why their investments are showing losses. Too often, the path for poor performance leads back to the stock broker. In these instances, it may be possible to recover money from your financial advisor.
Investment Security Legal Action
If you or someone you care about has not benefited from the extraordinary monetary gains from the stock market, it is a good idea to find out why this occurred.
The economy plays a major role in growing your stock portfolio, but it is not the only component. The strength of your success largely depends on the skill and expertise of your financial advisor.
Unfortunately, investors who have lost money may not be aware that they are a victim of their stock broker’s negligence, misrepresentation, or excessive fees.
If you believe poor investment advice, deception, or high management fees harmed the value of your stock market account, you may be able to take legal action. .
As an investor, you have legal rights.
You may be entitled to receive damages if you have suffered losses in the stock market as a result of an advisor’s incompetency, high trade charges, or other unscrupulous behaviors. There are also cases where losses were a result of financial adviser fraud.
Financial brokers in St. Louis and nationwide are under strict regulations by the Securities Exchange Commission (SEC) on how to manage the sale of stocks as well as how much can be charged for transactions. Investment counselors are required to make suitable recommendations to their customers. But too often, a portfolio can be jeopardized by a “bad pick” that negatively affects the client.
For example, a securities agent may have a customer who is conservative and not willing to risk losing a lot of money. If the stock broker puts that customer in an investment that is very speculative or risky, the broker can be held responsible if the investment loses money.
You may have the right to pursue legal action against your financial advisor to recover stock trading losses if you have been misled.
The Option of Arbitration
It is important to file legal action as quickly as possible, but this legal process can quickly become complicated. There are deadlines, documents to be filed, and countless details. That is why you should turn to an experienced lawyer to represent and help recoup the monies that are owed to you.
Arbitration through the Financial Industry Regulatory Authority (FINRA) is often a preferred alternative to litigation. Arbitration is a non-judicial proceeding. This legal process is traditionally faster and lower cost than taking the claim in front of a judge.
Arbitration and working with FINRA can be complex, so it is highly recommended that you work with a local securities arbitration lawyer in St. Louis. FINRA is a government-authorized not-for-profit organization dedicated to protecting investors. They are responsible for making sure the financial investment industry operates fairly and honestly. It is the responsibility of FINRA to provide truthful, trustworthy, and effective procedures in handling securities-related disputes.
Whether arbitrating the case or going to court, the legal process can be intimidating. Having a skilled and accomplished attorney by your side to represent you during the proceedings will provide guidance.
Remember, the other parties will likely have dedicated legal personnel who deal exclusively with these types of conflicts.
In legal matters, it is important to speak to a professional familiar with the laws in your state. It is in your best interest to consult an attorney with credentials to seek a recovery for you. Ross & Voytas should be your first stop.
As natives to St. Louis and licensed in Missouri, Illinois, and various federal courts, Ross & Voytas, LLC provide knowledge and personal attention to represent your interests.
The attorneys at Ross & Voytas bring more than thirty years of combined courtroom and litigation experience to support your rights. They have multiple 5-star reviews and partner, Rick Voytas, has earned the prestigious Martindale-Hubbell AV Rating, awarded to those lawyers with the highest ethical standards and professional ability.
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