Unsuitable Margin Trading

When a stock is bought on margin, the firm loans the investor the capital needed to buy the stock. The investor's account is used as collateral. Should the value of the investor's account fall below a certain point, the firm will liquidate what is left in the account unless more capital is added by the investor. When the stock that was bought on margin decreases in value, the firm will sell the stock, leaving the investor with a loss.

Given the inherently risky nature of margin trading, these investments are typically suitable for sophisticated investors who understand what is at stake. On the other hand, margin trading is an unsuitable type of investment for a broker to recommend to the average investor whose goals are building retirement funds or capital preservation. Yet, margin trading is recommended by brokers to just such investors, often with the pitch that the situation is too lucrative to pass up.

If you have experienced a loss in your investment portfolio that was related to buying stock on margin, your broker or investment advisor may have acted inappropriately and may be responsible for your loss. A lawyer experienced in securities arbitration and litigation can take effective action aimed at helping you recover appropriate damages.

Focused Exclusively On Helping Injured Investors

Attorney Marc Zussman understands the complexities of the market. Based in Los Angeles and serving investors across Southern California and beyond, Mr. Zussman has practiced law for more than 40 years and has been focused on securities law for more than 15 years. During that time, he has helped injured investors recover seven-figure sums in both FINRA arbitration panels as well as in trial. He has built a strong reputation over the years and is respected within the securities law community for the representation he provides to his clients as well as the results he generates.

Contact The Law Offices Of Marc I. Zussman

To schedule your free initial consultation, call 424-835-5733 or toll free at 866-451-2517, or contact him online.

In most cases, Mr. Zussman only charges attorney's fees if funds are recovered for you.