Pennsylvania Investment Loss Lawyers

As an investor, you entrust your financial well being into the hands of your experienced and knowledgeable stockbroker. The state of Pennsylvania imposes a fiduciary duty upon stockbrokers who make recommendations and investments on their client’s behalf. Fiduciary duty requires that at all times the stockbroker is to act for the sole benefit and interest of the client. The stockbroker becomes more than just an order taker, but has the affirmative duty to act on behalf of his or her client’s best interests.

Unfortunately, even stockbrokers can be overcome when dealing with very large amounts of money, especially when their getting paid depends on commissions. Commissions are paid only upon the making of a sale, not for all the time they spend with a client. The stockbroker is paid whether or not an investment is consistent with the client’s objectives and whether or not the investment is successful.

Commission levels vary depending on the type of investment sold:

• 1-2% for mutual fund sales
• 3-4% for stock sales
• 8-10% for limited partnership sales

The above percentages are typical, but every stockbroker is different. Never hesitate in asking your stockbroker what their commission rates are.

This system can lead to many problems and much room for fraud and investment loss, especially for those who are widely educated and up to date about current investment situations. A trusting investor may take the faulty advise of their stockbroker, only to suddenly loose hundreds, thousands or millions of dollars, all at the cost of a commission hungry stockbroker.

If you have suffered investment losses due to a deceptive stockbroker or financial advisor please call the Pennsylvania investment loss attorneys at Anapol Schwartz for your free and confidential consultation.

CALL TODAY 866.735.2792