We are living in a fascinating time where the stock market is exploding. In 2019, the growth of the market was significant:
- the Dow 30 jumped 22.3%
- the S&P 500 gained 28.9%
- and NASDAQ rose 35.2%.
In this booming market, working with financial advisors and brokers is the traditional method for taking part in the stock market. People from all walks of life count on their financial advisors 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 many investors are finding gains in their portfolios, others wonder why their investments are showing losses. Sometimes, the path for poor performance leads back to the financial advisor. In these instances, it may be possible to recover money from your financial advisor.
Investment Legal Action
If you or someone you care about has not benefited from the gains of 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 success of your portfolio also depends upon the skill, expertise and diligence of your financial advisor.
Unfortunately, investors who have lost money may not be aware that they have been a victim of their financial advisor’s negligence, misrepresentation, or excessive fees. If you believe poor investment advice, deception, or high management fees have 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 a financial advisor’s incompetency, high trade charges, or other unscrupulous behaviors. There are also cases where losses were a result of financial adviser fraud.
Investment advisors 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 advisors 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 financial advisor may have a customer who is conservative and not willing to risk losing a lot of money. If the advisor puts that client in an investment that is very speculative or risky, the advisor may be 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 recommended that you work with a knowledgeable lawyer during this process. 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 an attorney by your side to represent you during the process will provide guidance. Remember, the other parties will likely have dedicated legal personnel who deal exclusively with these types of disputes.
In legal matters, it is important to speak to a professional familiar with the laws in your state. If you believe that you have a claim arising out of or related to bad investment advice in Missouri or Illinois, call us Ross & Voytas.
Ross & Voytas, LLC are trial lawyers with big firm experience and small firm values. We combine objective advice with the tactical know-how to obtain the compensation you deserve.
The attorneys at Ross & Voytas bring more than thirty years of combined courtroom and litigation experience to support your rights. Clients have given our St. Louis law firm multiple 5-star reviews and we handle difficult cases.
As natives to St. Louis and licensed in Missouri, Illinois, and various federal courts, Nate Ross and Rick Voytas provide knowledge and personal attention to your legal matter.
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