- Misrepresentation – If a broker fails to give you all the information about an investment opportunity or does not disclose certain risks, then you may have a stockbroker fraud case if you suffer investment losses.
- Breach of Fiduciary Duty – Brokers and brokerage firms have a duty to deal in good faith with their clients and many jurisdictions hold that brokers owe their securities customers a heightened duty known as “fiduciary duty.” Brokers and brokerage firms can be held responsible for abusing the investor’s trust and confidence and breaching their fiduciary duties
- Suitability – A broker’s advice should fit within your criteria, meet your financial goals and match your risk tolerance and overall situation. The brokerage firm could be held liable for your financial losses when a broker suggests unsuitable investments and you lose money.
- Churning – When a broker engages in excessive trading for the purpose of generating additional commissions, this is called “churning.” Both the broker and the brokerage firm may be held liable for any losses that arise out of the churning.
- Overconcentration – Failure of the broker to diversify an investor’s portfolio against a decline in value of one particular investment.
- Failure to Execute – When you have requested an order to be placed on your behalf and the broker failed to timely execute that order, you may be eligible to recover losses associated with the failure to execute.
- Negligence – Any conduct that falls below the set standard of care that a reasonable, prudent person would have utilized in the same situation.