Countless Americans make an income off of investments; for some, this represents their primary form of income. In recent months, however, this has become something of a risk. The recent pandemic has caused the stock market to fluctuate, as the American economy experiences rises and falls in congruence with the virus. While this isn’t the first time Americans have experienced an economic downturn, and certainly not the first time in the 21st century, it does present a certain amount of risk to investors. It also presents a certain level of risk of fraud.
Securities fraud and other securities issues are not, unfortunately, particularly unusual in the grand scheme of things. 2019 alone saw the filing of 433 different federal securities class actions. It was actually the third straight year with over 400 different filings. Therefore, it should come as no surprise that people have been forced to seek the help of securities lawyers. In fact, many Americans don’t know exactly what securities attorneys are responsible for. Securities lawyers, however, are crucial in this day and age, particularly if you make an income off of investments. With that being said, let’s look into why securities lawyers fill a necessary space in the legal profession, and how they can make a difference for their clients.
What Do Securities Lawyers Handle?
Securities lawyers, sometimes referred to as securities fraud lawyers, are responsible for ensuring that investors are protected in cases that involve losses or potential losses. When certain losses seem as if they aren’t entirely legal, a securities lawyer should be consulted with as quickly as possible. While an investor may initially want to pursue these questions on their own, securities fraud cases are actually incredibly complex. The fact is that securities fraud sometimes doesn’t involve only the initial questioning investor, but all of the investors in a company. This means that in the long term it can end up involving hundreds of millions of dollars. Obviously, investors don’t want to be careless with that kind of money. This makes the use of securities litigation services all the more important.
Why Do We Need Securities Lawyers?
Many investors aren’t even aware of how easily securities fraud can occur. Investment losses tend to come with the territory of investing, and therefore many attribute them to unpredictable changes in the stock market. However, at times these losses occur due to intentional misconduct on the part of financial advisers and stockbrokers. It can also be attributed to negligence, or straightforward fraud. In cases like these, financial advisers and stockbrokers must be held responsible. For this reason, it’s possible for investors to sue these parties involved in order to recover their losses. But this cannot be properly done without the help of an attorney.
What Signs Should I Look Out For?
Lots of investors initially miss the signs that their investment losses were the result of the actions of their advisers or stockbrokers. There are certain signs to look out for; and if you notice them, you should get in touch with a securities lawyer. For one thing, it’s important, as an investor, to keep careful records of your investments and financial transactions. If your adviser or stockbroker presents records that don’t match yours, you should make a point to explore it further. If your broker trades more than you expected on your account, or charges fees that are different than what was previously disclosed, there may be some kind of suspicious activity at play. At the same time, if much of your account is occupied by a singular investment, this could also be a sign that there is something unusual occurring with your account. Of course, another major red flag is if your broker is making large commissions while you’re losing money. You should see some kind of congruence with your broker’s commission and your success as an investor. After all, a broke is meant to succeed when you succeed.
Not all investors will need the aid of securities lawyers throughout their investment careers. However, working with a securities lawyer can make a big difference in the long term. It’s important that you protect your investment from the start; after all, your investment represents long-term financial gain.