welcome
Return to Sadler & Hovdesven Home Page
Securities and Commodities Arbitration and Litigation
J. Pat SadlerEric Hovdesven
12 Ways to Protect Yourself Against Investment Fraud
Investment Resources

Table of Contents

  1. Stick with a name you know or a trusted professional.

  2. Check into the backgrounds of the broker and brokerage firm.

  3. Beware of the broker who tells you that he only makes money when you make money.

  4. Be wary of a broker who wants to liquidate your blue chip holdings or steers clear of blue chip stocks in order to invest in lesser-known securities.

  5. Never do business with a broker who offers to sell you a position in a hot initial public offering (IPO) but only on condition that you agree to purchase shares in aftermarket trading.

  6. Do not allow your broker to hold you in a stock when you want to sell.

  7. Hang up on any broker who wants you to buy or sell a security based on inside or private information.

  8. Do not overstate your income, net worth and objectives and ask for a copy of your new account information form.

  9. It is very easy to lose money on small-cap or bulletin board stocks.

  10. Be wary of the brokerage firm manager who promises special treatment to make up for losses you have suffered at the hands of one of the firm's brokers.

  11. Put it in writing, keep notes and act promptly.

  12. Write checks only to the brokerage firm.

Get a printer-friendly version of this article.

To send us an email, use our online contact form or email info@sandhlaw.com.

Directions Sadler & Hovdesven, P.C.
Contact Info
Disclaimer
Attorneys at Law - Representing Investors - 1155 Hightower Trail - Atlanta GA 30350 - (770) 587-2570 - 1-800-587-2570 - info@sandhlaw.com

12 Ways to Protect Yourself From Investment Fraud
 
Stick with a name you know or a trusted professional.

In the investment field there are two types of firms. On one level you have firms that have earned the respect of professionals and clients. On another level you have firms which do not respect their clients and who wither under the scrutiny of professionals.

Go with a firm that has been in business for over ten years that is known throughout the investment community. Look for a firm whose analysts get quoted in financial publications or appear on the financial news channels.

Of course there are small firms which are honest, but if choosing one make sure you have first hand knowledge of the professionalism of the broker and the firm.

Of course, even reputable firms have dishonest stockbrokers, but chances are they will ultimately fire the dishonest brokers and assuming you have documented your complaint, they may compensate you for wrong-doing.

Print This Article

<<Return to Introduction

>>Next tip

Site Navigation
Sadler & Hovdesven, P.C. Home
J. Pat Sadler | Eric Hovdesven
12 Ways to Protect Yourself
Directions | Contact Info | Disclaimer

This web site is best viewed using Internet Explorer or Netscape Navigator versions 4.0 and above.

© 2007 Sadler & Hovdesven, P.C.
Read Our Legal Disclaimer
Web Design by Metro Girl