Stock Investment Losses – Check your Broker!!!

Aug. 9th, 2011   /  

This recent loss and market downturn is in the news because it’s on a large scale and it affects everybody.  But there are losses in the stock market each and every day, even if the stocks are up.  Just like a seesaw, if something goes up, something else must come down.  If somebody makes money, somebody else must lose it.  Money isn’t just printed on the good days and burned on the bad.  It moves around all the time.  Don’t be stuck trying to perform damage control once losses are reported.  There are ways to begin the process of protecting yourself before you put even a cent into the stock market.  Your gains or losses in the market begin and end with the securities firms and investment specialists which you trust to invest your money wisely.  More often than we would like to believe, unqualified and rogue financial “experts” invest your money without regard to who is really in line to take the fall in the case of a loss.  Do your research before you give your money to someone else to spend it.  You make sure construction workers are qualified to renovate your home before they take a hammer to it and you make sure babysitters are qualified to look after youngsters before you leave your children with them, so why not make sure the men and women who handle your money are qualified to do just that?

 There are multiple popular ways to do background research on prospective investment advisers before you give them any of your hard-earned money.  First, you can go to the Investment Adviser Public Disclosure website located at adviserinfo.sec.gov.  This site, run by the Securities Exchange Commission, provides brochures and detailed information on many, many investment advisers.  Also, on this site, you have the ability to see if the firm or adviser in question has been involved in regulation violations or has been subject to complaints.  

Similar to the SEC website is the Financial Industry Regulatory Authority website, located at finra.org.  At that site you can educate yourself on all of the regulations and compliance requirements associated with investment advisers and trading in the stock market.  Once you’ve found a suitable investment adviser, who meets the criteria for what you are looking for, ask every question imaginable.  Find out exactly what their policies are on fees and investment strategies, so that there are no surprises down the road. You can also check on a broker’s history and background by going to http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/.

Protect yourself before you have to backtrack to see where you went wrong.  The stock market is just that—a market—and sometimes business is good and sometimes business is bad.  Whether it’s a good day or it’s a bad day, someone is always on the losing end of something.  Make sure that your money will be in good hands before you hand it over. 

If you feel you have suffered an avoidable and unjust investment loss, do not hesitate to contact the Law Offices of Aronberg and Aronberg at 561-266-9191 or email us at daronberg@aronberglaw.com.

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