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

Suitability Violations

One common area of stockbroker fraud concerns suitability. A broker must take reasonable steps to ensure suitability or appropriateness when recommending that you buy or sell a given security.

Some factors to be considered include your risk tolerance, your long-term investment objectives and your current financial situation. If a broker makes recommendations that are inappropriate for a person of your age, education, experience or risk tolerance, then you could be entitled to a recovery of funds and brokerage fees.

Suitability is governed in part by the Financial Industry Regulatory Authority’s (FINRA’s) Rule 2310. It states:

(a) In recommending to a customer the purchase, sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such customer as to his other security holdings and as to his financial situation and needs.
(b) Prior to the execution of a transaction recommended to a non-institutional customer, other than transactions with customers where investments are limited to money market mutual funds, a member shall make reasonable efforts to obtain information concerning:
(1) the customer's financial status;
(2) the customer's tax status;
(3) the customer's investment objectives; and
(4) such other information used or considered to be reasonable by such member or registered representative in making recommendations to the customer.
(c) For purposes of this Rule, the term "non-institutional customer" shall mean a customer that does not qualify as an "institutional account" under Rule 3110(c)(4).

Stockbrokers and other investment advisers must follow Rule 2310 by only making investment recommendations that are suitable for each individual investor. Rule 2310 emphasizes that a broker’s failure to disclose or discover risks related to a particular investment or investment strategy may be considered professional misconduct. Accordingly, if your funds have been placed at inappropriate risk, you may be able to take legal action against your broker and your brokerage firm.

Stockbroker sold you a bad product? 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.