Protecting your rights.

Learn about how to protect your rights as an investor. 


Read more...
Charles Schwab Stock Losses

The Charles Schwab Corporation was founded in 1971. Originally, the company was named First Commander Corporation. Two years into its existence, the company changed its name to the one it currently has: the Charles Schwab Corporation. This name came from the founder and principle stockholder of the company at the time, Charles R. Schwab. 


Read more...
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

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.

A well-diversified portfolio is invested in each of the different industry sectors (i.e., healthcare, financials, industrial, technology, utilities, manufacturing, telecommunications and the like) commensurate with the investor’s risk tolerance.  Industry sectors tend to move up and down at different times and at different rates.  Investing a portfolio across each of the industry sectors reduces risk and in many cases can even increase return. Diversifying a portfolio, therefore, across the industry sectors is vital to the success of a portfolio.

Two important reasons to diversify one’s investment portfolio are to take maximum advantage of market conditions in specific sectors and to protect one-self against downturns in one specific industry or in one issuer.  When a portfolio is concentrated in a single investment, or sector, the value of the portfolio can drop sharply if that issuer or sector has disappointing returns. If the portfolio, however, was comprised of many different types of investments from different issuers and sectors, some may go down in value while others may remain stable or go up.  In any case, different types of investments will not all lose value at the same rate or at the same time.  Diversification, therefore, is extremely important because an investor can reduce risk and increase the returns.  It is well known in the industry that concentrating a portfolio in a single issue or sector exposes a portfolio to unnecessary risk.

Examples of Over Concentration or Failure to Diversify include, but are not limited to the following:

    1. - Concentrations in REITs
    2. - Concentrations in financials
    3. - Concentrations in a single stock or bond mutual fund
    4. - Concentrations in a single stock
    5. - Concentrations in a single issuer
    6. - Concentrations in longer-term bond maturities
    7. - Concentrations in a market sector such as cyclical stocks
    8. - Concentrations in metals such as gold and silver
    9. - Concentrations in energy stocks
    10. - Concentrations in preferred stocks

Lost money because of your stockbroker?

We will fight to help you get your money back. If you have lost over $100,000 due to stockbroker fraud, contact us to protect your rights. Complete the form on this page or call 1-800-934-2921 for a free no obligation consultation with a lawyer. We work on a contingency basis, so rest assured that there will never be an out of pocket expense to you.