Florida Speculative Securities Products Lawyer
Not all securities and financial products are wise investments. As we all saw during the Financial Crisis of 2008, speculative securities products, such as poorly structured collateralized debt obligations (CDOs) or fraudulent mortgage backed securities (MBS or CMOs), can cause devastating losses to investors. These complex, risky investment vehicles are simply not appropriate for most investors.
Gregory Tendrich is an experienced Florida speculative securities products lawyer. If you were sold complex financial/investment products that were defective or that were otherwise unsuitable for your risk profile, we can help. To find out if you are eligible to recover compensation for your losses, please contact our law firm today for a free case evaluation.
Financial Products that are Too Risky for Most Investors
Under FINRA Rule 2111, registered brokers and financial advisors must recommend securities that are appropriate for the investment goals and risk tolerance of each individual investor. Speculative securities are not appropriate investments for most investors. Some complex financial products often have hidden risks that have not been properly disclosed to investors. Notable examples of securities products that may be speculative include:
- Leveraged ETFs: An exchange traded fund (ETF) is an investment fund that trades on an exchange and operates much like a traditional stock. When ETFs are leveraged, it means that they are using derivatives and debt to amplify the overall returns — positive or negative. In other words, these products have the potential to result in investors suffering major losses.
- Real Estate Investment Trusts (REITs): A real estate investment trust (REIT) is an entity that invests in income-producing property. REITs are notoriously risky: they are illiquid and come with high investment fees. REITs are not advisable investments for most investors.
- Complex Debt Products: Complex debt-related products, like mortgage backed securities and promissory notes, may be extremely risky. Unfortunately, these risks are not always properly disclosed to investors.
- Commodity Futures: Commodities (gold, silver, oil, cooper and other homorgenous goods traded in bulk) are risky assets. With commodities futures, the chances for significant losses are substantial. These financial products are complex and only suitable for sophisticated investors who are well-positioned (and willing) to take on considerable financial risk.
You May Be Entitled to Compensation Through FINRA Arbitration
Most securities claims are resolved through the FINRA arbitration process. This is because the vast majority of investors have an agreement with their brokerage firm that includes a pre-dispute arbitration clause.
If you sustained losses in complex speculative securities, you should consult with an experienced FINRA arbitration attorney immediately. Your lawyer will help you take the appropriate steps to pursue compensation for any illegitimate investment losses.
Did You Sustain Investment Losses Due to a Speculative Securities Product?
Our legal team can help. At the office of Gregory Tendrich, P.A., we represent investors who lost money due to speculative securities products. Your financial advisor or brokerage firm may be legally liable for your losses.
To set up a free, fully confidential review of your investor losses claim, please do not hesitate to contact our law firm today at (561) 417-8777. With an office in Boca Raton, we represent investors throughout South Florida, including in Miami-Dade County, Palm Beach County, and Broward County.