Protecting your rights.

Learn about how to protect your rights as an investor. 


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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. 


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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

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.

REITs are often backed by highly speculative investments such as bridge and mezzanine loans. As a result, investors are exposed to substantial risks, which can include a total loss of principal and the issuer may reduce or stop dividend payments altogether. A fate many retirees find themselves in today.

Beyond the risks of the underlying investments, REITs are also highly illiquid investments. This means that investors often have a difficult time selling REITs. Most REITs are what you call non-traded REITs. Non-traded REITs do not trade on a market like the New York Stock Exchange or NASDAQ. Non-traded REITS can be sold to private buyers. The private market is extremely limited and most private REIT buyers offer very little to purchase shares. As a result, REIT investors must either sell their investments at a deep discount or not at all.

It is important for investors to understand that REITs often pay brokers high up front commissions. It is not uncommon for a broker to earn 7% on a REIT trade. Although your broker is mandated to only sell you investments that are suitable for your needs and risk tolerance, the high commissions are very tempting. Brokers should not be putting their interests before the needs of their clients and offering REITs in concentration. REITs may only be suitable for highly sophisticated clients with small holdings in REITs of approximately 5% of your fixed income portfolio. Recommendations beyond 5% of your fixed income portfolio are likely improper as a result of the liquidity concerns and underlying speculative investments.

Current Real Estate Investment Trusts our law firm is investigating include the following:

- Wells Timberland REIT

- Behringer Harvard

- Inland Western REIT

- Inland American REIT

- Amidee Capital

- Cornerstone Core Properties REIT

- KBS

- Hines

- Cole Credit

- CNL

- Grubb & Ellis

- Desert Capital

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.