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Can you sue your stockbroker if your investments have gone down in value? Welcome and thank
you for joining me. I’m Jim Bendell, an attorney practicing in Coeur d'Alene, Idaho.
Well, you can’t sue your stockbroker just because your investments have gone down. After
all, markets go up and markets go down. But there are specific circumstances in which
you can sue your stockbroker. I’m just going to give you a few examples. One is called
“churning.” What’s churning? Churning occurs when a stock broker buys and sells
large amounts of stocks or mutual funds for the purpose of generating commissions. That
is, he or she is not looking for your interest. The stockbroker is just trying to generate
large commissions for himself. Another example, inappropriate investments. That is, if a stockbroker
makes investment selections that are not appropriate for your level of risk. For example, take
an elderly person who is in retirement. It would be inappropriate if a stockbroker put
a large amount of money into aggressive shares if that person may need monthly income right
now and in the coming months. Why am I telling you this? Because if you’re watching this
you have questions about stockbrokers and their liability. These are the types of questions
I answer every day at my law practice. So what I’d like you to do is this, pick up
the phone and call me with these questions and I’ll answer them for you. You can reach
me at 208-665-4600. I’m Jim Bendell, thank you for watching.