Victims of securities fraud should be familiar with the different types of securities fraud that may be actionable and the different types of securities fraud litigation and claims. They can use those resources to protect themselves from further harm when they have been harmed by securities fraud.
Breach of fiduciary duty
When an investment broker violates their fiduciary duty to an investor, they may be liable for violating their duty loyalty and fidelity.
Conflict of interest
When a securities firm conducts both investment banking and stock analysis and brokerage work, there can be a conflict of interest between the two.
Excessively trading on a client’s account to increase commissions may cause the client to lose money.
Failure to diversify
When a brokerage places all of the client’s assets in a single stock or industry they may be liable to a failure to diversify.
When a trade is made based on insider information, there may be liability for insider trading which is prohibited.
When a brokerage undertakes market maker activities to create an artificial market price.
Investments that may potentially yield high positive results but can also lead to more significant losses may be considered risky. Clients need to be aware of and agree to these potential risks.
There are other types of securities fraud that may lead to securities litigation including trading without permission, omission of facts, misrepresentation, failure to supervise or ineptitude or malpractice. Securities fraud litigation claims can help investors who have suffered losses because of some type of securities fraud which may be devastating for their financial future.