An unethical practice employed by some brokers to increase their commissions by excessively trading in a clients account. It is also referred to as churn and burn, twisting and overtrading.
A situation where in an attempt to make a short term profit, a broker confirms an order to a client without actually executing it. If the eventual price that the order is executed at is higher than the price available when the order was submitted, the customer simply pays the higher price. On the other hand, if the execution price is lower than the price available when the order was submitted, the customer pays the higher price and the brokerage firms pockets the difference.
The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients have been given the information. An example is when an analyst or brokers buy up shares in a company just before the brokerage firm is about to recommend the stock as a strong buy.
A fraudulent trading scheme where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, either have been or will be entered. These trades do not represent a real change in the beneficial ownership of the security.
The unlawful practice of adding an extra broker/dealer as a principal on a trade, even if no service is provided. Typically interposistioning is done as a part of a mutual benefit strategy, sending commission to the broker/dealer in exchange for referrals or the other cash profit. This type of behavior occurs at the upper levels of trade between specialist and broker/dealers, hedge funds or other institutional accounts interpositioning violates the investment Act of 1940.
When a broker or advisor buys or sells a security for a client(s) and then immediately makes the same transaction in his or her own account.
A transaction that makes money by unethical means. Culprits supposedly feel guilty having made money in such an unscrupulous way.
The illegal act of bidding up the value of a fund’s holdings right before the end of a quarter. When the fund’s performance is measured. This is done by placing a large number of orders on existing holdings, which drives up the value of the fund.
A highly illegal practice occurring mainly on the internet. A small group of informed people attempt to push down a stock by spreading false information and rumors. If they are successful, they can purchase the stock at bargain prices.
The illegal practice of attempting to push the price of a stock lower by taking large short positions and spreading unfavorable rumors about the target firm.
If you lost a substantial amount of money following your stockbroker or financial advisor’s advice to invest In mutual funds that only make money when the stock market goes down, please call us so we can assist you in recovering your investment losses through securities arbitration.
There is no fee to review a potential claim. We will spend whatever time is necessary, at our expense, to analyze your case and determine whether we can recover your investment losses.
If you suspect you may be the victim of stockbroker misconduct, you need to contact a knowledgeable experienced arbitration advisor right away. Recovery of your stock market losses may not be possible if you wait too long to file a claim. We will work diligently to assemble a strong case aimed at getting you the highest possible recovery, plus additional expenses including interest. Time is of the essence in investment fraud cases. If you feel that your stockbroker or financial planner has taken advantage of you. Let us help you start the recovery process for you today.
Subscribe to our newsletter and get the latest updates