Stock Fraud - Misrepresentation

Full Video Transcript

Before your investment broker can make any recommendations to you regarding a new opportunity, he or she must first research the investment to uncover all associated risks. When your broker does eventually make a recommendation, he or she is required to disclose all known risks to you regarding the investment. Sometimes, a broker may not disclose all risks for fear you may not agree to go along with the investment. When this happens, it's known as misrepresentation and your broker may be liable for any losses you suffer as the result of the transaction. However, if you were to suffer losses as a result of a risk that was not previously known or because of a risk that was outside the knowledge of your broker, you may not be able to recover your losses. If you feel you were cheated by your broker, contact an experienced attorney to find out your legal options.

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