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A Stockbroker Fraud Lawyer Explains Your Legal Rights as an Investor

Investors in the United States have clear legal rights. Not only do federal securities laws provide several critical protections, but the Financial Industry Regulatory Authority’s Rules provide investors with key rights as well. Even so, protecting your legal rights as an investor isn’t easy, and if you need to take action to enforce your rights, you should speak with a stockbroker fraud attorney promptly.

Understanding Your Legal Rights As an Investor in the United States

So, what are your legal rights? As an investor in the United States, your legal rights include:

1. The Right to Receive All Material Information Before Investing

Investors have the right to receive all material information about an investment before making their investment decisions. When you work with a stockbroker, your broker should provide this information to you as a matter of course. If you can’t get any of the information you need from your stockbroker (including information about your broker’s fees or commissions), this should be a red flag.

2. The Right to Not Receive Any False or Misleading Information

In addition to receiving all material information about an investment, you also have the right not to receive any false or misleading information from the issuer or your stockbroker. Your broker should be capable of identifying any issues with the issuer’s public filings, and your broker should never misrepresent the risks or costs associated with an investment.

3. The Right to Have Your Stockbroker Act in Your Best Interests

When you work with a stockbroker, your broker is supposed to provide investment recommendations that reflect your best interests—not his or hers. Your broker should recommend investments that align with your investor profile and risk tolerance and that help you avoid overconcentration.

4. The Right to Take Legal Action When Necessary

As an investor, you have the right to take legal action when necessary. While this may mean going to court, it will usually mean filing for FINRA arbitration. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to pursue claims against their brokers that is more efficient than traditional courtroom litigation.

5. The Right to Gather the Evidence You Need to Prove Stockbroker Fraud

When you have a claim for stockbroker fraud, you won’t always have the evidence you need to prove it. But, you are entitled to gather this evidence through the litigation or arbitration process. When you hire a stockbroker fraud lawyer, your lawyer will assert your legal rights on your behalf—and this includes your right to obtain the evidence you need to recover your fraudulent investment losses.

Speak with a Stockbroker Fraud Attorney for Free

Do you need to know more about your legal rights as an investor? If so, we invite you to get in touch. To arrange a free and confidential consultation with a stockbroker fraud lawyer at Zamansky LLC, please call 212-742-1414 or request an appointment online today.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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