A common misunderstanding about investing in bonds or bond mutual funds is that there is no risk to principal. This is not the case. Interest rates are currently at historically low levels. If interest rates rise, bond prices would fall, … Continue reading
The Dodd-Frank financial overhaul legislation was passed by Congress and signed into law by the President. What impact does it have for individual retail investors? The consensus among the experts is that it has no immediate benefit for retail investors … Continue reading
Fannie Mae and Freddie Mac common stock was delisted from the New York Stock Exchange today. This brought back memories regarding preferred stock losses that continue to weigh down investment accounts. Many investors sustained significant financial losses as a result of … Continue reading
Risk tolerance is the degree of uncertainty that an investor can handle in regard to a negative change in the value of an investment. Risk of loss of principal is the primary risk concern for investors but there are other … Continue reading
With interest rates at all time lows, interest and dividend yields on fixed income investments have declined. As a result, investors and financial advisors are looking for alternative investments that generate higher yields and some advisors are recommending structured products … Continue reading
On May 6, 2010, there was a “flash crash” in the equity markets. For example, the Dow Jones Industrial Average declined nearly 1,000 points before bouncing back somewhat by the close of the trading day. Many investment and retirement accounts … Continue reading
I attended a recent seminar presented by the Palm Beach County Bar Association Securities Law CLE committee. The seminar was titled Criminal, Civil, Regulatory and Ethics “Now What Do We Have to Worry About?” Lawyers representing individual investors, financial advisors … Continue reading
The Financial Industry Regulatory Authority (FINRA) fined Citigroup Global Markets, Inc. $650,000 for disclosure and supervisory violations relating to the operation of its stock borrow program. What is a stock borrow program? A stock borrow program is an agreement between … Continue reading
The alphabet soup of securities litigation starts with the broad variety of investment securities offered by financial advisors. For example, CDO (collateralized debt obligation) SIVs (structured investment vehicles), MBS (mortgage backed securities), and trust preferred securities were common investments held … Continue reading
Welcome to my securities law blog. As an experienced securities litigation attorney and former financial advisor, I am writing to educate and provide information to investors, financial advisors, and others about the financial services industry. The blog provides information on … Continue reading