Stockbroker Overtrading

IS YOUR STOCKBROKER OVERTRADING – BUYING AND SELLING LOTS OF STOCKS IN A SHORT TIME?

One of the most common examples of stock broker misconduct is when the broker overtrades your account in order to get commissions. This kind of stock broker misconduct is often called churning.

Churning or overtrading occurs when, to obtain commissions, your broker causes stocks or other investments in your account to be traded with a frequency too great in light of your financial needs, resources, or investment objectives.

Because brokers always deny that they are overtrading, we prove overtrading indirectly. Specifically, we have helped investors recover money in an overtraded account by showing the following:

1. The broker exercised control of the trading activity in the account either by written trading authorization or because you routinely agreed to every trade recommended by the broker;
2. The broker engaged in excessive trading contrary to your investment objectives and risk tolerance; excessive trading is shown mathematically by calculating how often stocks were bought or sold over a given period of time.
3. The broker acted with an intent to defraud, or acted recklessly and disregarded your best interests. Most of the time the broker is intending to get additional commissions.

Stock broker churning takes money out of your pocket.

If you feel that your broker has overtraded or churned your account, we may be able to help you get those commissions back plus interest.