Protecting your rights.

Learn about how to protect your rights as an investor.

Signs of stockbroker fraud.

Learn about the signs to watch for if your stockbroker is defrauding you.

What is Stockbroker fraud?

Learn about what stockbroker fraud is and the different types of stockbroker fraud.

Types of Stockbroker Fraud

Stockbroker fraud is more common than you think. It's one of the main reasons small investors lose money in financial markets. While most brokers are honest and hardworking, you should always pay close attention to what your broker is doing and to how that impacts your investments. Unfortunately, many victims of stockbroker fraud aren't aware of it until after they've lost a lot of money.

The duty of your broker is to protect your investments. When a broker puts personal gain ahead of your financial well-being, it's called fraud. There are many ways an unscrupulous stockbroker or brokerage firm can defraud an investor.

Below you will find some of the common types of stockbroker fraud that our law firm sees.

5 Reasons Investors Should Think Twice About Owning Bond Funds

Kyros Law Offices represents investors that have suffered losses due to broker misconduct. Beyond helping investors recover from investment losses, Kyros Law Offices also tries to warn investors of potential harm before it occurs. One area for potential investment losses involves bond fund investments. Here are five reasons why investors should think twice about owning bond funds:

1. Interest rate risk

2. Credit risk

3. Redemption risk

4. Ongoing management fees

5. Uncertainty regarding what bonds or debt the fund owns.

If you have suffered losses of $100,000 or more in your bond fund investments, please call one of our securities attorneys to discuss your rights. 1-800-934-2921

The Importance of Asset Allocation

Allocating one’s investments into different investment vehicles such as fixed income and cash is vital. According to many securities industry resources, your asset allocation can have a dramatic impact on an investor’s overall return.

Real Estate Investment Trusts (REIT)

REITs are short for Real Estate Investment Trusts. REITs are often sold to investors seeking income. Although REITs offer income investors yields greater than treasury bonds, the uncompensated risk for a small increase in yield is substantial.

Over Concentration and Failure to Diversify

Diversification means creating an investment portfolio that contains different types of investments within each of the different industry sectors.

Variable Annuities

Variable annuities are one of the most confusing investment products for investors to understand. Most variable annuities are sold to investors on a solicited basis, meaning that the broker brings the investment idea to the investor. As a result, investors often rely heavily upon the broker that is recommending the variable annuity for information regarding the risks, material terms, and costs and fees associated with variable annuities.

Selling Away

Selling away occurs when a registered representative sells securities to investors away from the FINRA member that the registered representative works for. Investors are essentially purchasing investments that were not supervised and were not subject to adequate due diligence prior to the sale to the investor.

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