Legal Question in Securities Law in Pennsylvania

securities law/stocks

I have several financial stocks. My portfolio manager in a big company did not warn/inform me to sell the stocks before a financial stock market crash. Do I have any legal rights?


Asked on 4/16/08, 9:03 pm

1 Answer from Attorneys

Nicholas Guiliano Arbitration, Securities & Investment Fraud Lawyer

Re: securities law/stocks

Unfortunately, your broker or money manager is not required to portend the future and cannot be held to the standard of clairvoyant. You only know it was a "crash" with the benefit of hindsight, and if you sold in a mere temporary downturn and realized losses, only to see those securities rebound, you complaint may have been why did he or she sell these securities. The same is true for stop loss orders, they are great at turning unrealized losses into realized losses. The question is not when they should have sold the securities. The real question is whether, based on the volatility and risk associated with these securities, AT THE TIME OF THEIR RECOMMENDATION, were SUITABLE or appropriate for you and were they consistent with you age, income, net worth, overall financial condition, and stated investment objectives. The question is not when to leave the casino, but whether you had any business being in the casino in the first place. I hope I answered your questions. Additional information about these claims is available at www.stockbrokerfraud.com.

Thank you.

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Answered on 4/17/08, 2:13 pm


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