Detecting Stockbroker Malpractice

Justin Madden

Contributor

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Detecting Stockbroker malpractice begins with the investor. The investor must diligently monitor all trades, fees, commissions and losses, and know whether the stockbroker is complying with the investor's wishes and agreement. It is especially important for the investor to monitor whether the trades that the stockbroker makes are consistent with the investor's risk tolerance.

We commend Attorney Phil Sever for an excellent article on detecting stockbroker malpractice and suggest your reading of the article by clicking on stockbroker malpractice.

One of the saddest legal cases we are asked to handle involves the retired investor who trusts their entire retirement to a stockbroker whose greed, or mismanagement, results in a devastating loss for the retiree. The retired investor inevitably bemoans to us that "I trusted that guy, I should have watched more carefully."

It may be too late to recoup the losses through investment, but an experienced and qualified attorney may be able to pursue a claim through the appropriate arbitration procedure and recoup the losses from the stockbroker or their employer.

However, the investor needs to be attuned to their portfolio, and must immediately contact an attorney when something appears amiss.