You Know You May Lose On The Stock Market But You Don't Expect To Be Taken Advantage Of By The Broker
When you invest in the stock market, you know there is a chance you'll lose your money. You hope that your broker, or anyone else giving you advice, knows what they are talking about and your investment will make money, but that is not always the case. It could be that you need to wait longer for a stock to increase and you need your money now. Whatever the reason that you take a loss, you knew it was a gamble. However, when your broker is not doing his or her job, and fraud is involved, you should hire a securities lawyer from a law firm like Carter & West Law. Here are some clues that the problem isn't the stock market but the broker.
Unauthorized Trades
Any time you notice some trades that you did not authorize, there is a problem. Contact a securities lawyer to look into your portfolio. He or she will be able to do so without alerting anyone and can get to the truth of what happened to your money.
Frequent Trades
While a stock broker is expected to make trades that will be beneficial to your account, there should not be frequent trades for an extended time. You may have given the broker permission to sell stock at a certain rate and to buy stocks when they are at a certain price; however, this should not result in frequent trades for more than a day or so. If you notice that your broker has been buying and selling the same stocks for a few days, it is time to contact a lawyer to find out why.
Sudden Large Loss
While it is possible for the bottom to fall out of a company, resulting in a huge drop on the stock market, there is usually a lot of news on this. You should be able to find information on a big problem on the news, the internet, and even in social media. In reality, your broker should have contacted you and tried to sell your holdings as soon as any news hit. If you find that you have taken a large loss in a single day without a reasonable explanation from your broker, call a lawyer to check into things.
Your stock portfolio should be a fairly stable asset. If you find it is not, it could be that the broker is not good at his or her job. Contact another broker to see what they have to say about your portfolio. If all seems normal, it is time to get legal help. Fraud is a serious charge when it comes to the stock market. You do not want to attempt to get to the bottom of things alone.
