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Stockbroker Negligence

Stockbroker Negligence Claims in California

In making an investment recommendation to a client, a broker must make recommendations that are consistent with the customer’s risk tolerance, needs, and investment objectives.

A broker has a duty to know his or her client and only recommend investments and trading strategies that are suitable for that client. An investment may be unsuitable if a customer does not have the financial ability to incur the risk associated with a particular investment, if the investment was not in line with the investor’s financial needs, or if the customer did not know or understand the risks associated with certain investments. A broker has a duty to understand the risk tolerance of an investor, the tax considerations for the client, and the client’s prior experiences. It is the duty of a broker to make recommendations that are appropriate and suitable given his client’s circumstances.

If you believe that your broker recommended unsuitable investments that resulted in losses to your account, contact us for a full, no obligation, and confidential evaluation of your potential claim.