Stock broker fraud: maybe it’s time for you to change brokersInsurance, Investment, Money | December 13, 2010 at 5:15 am
As people go, I think it’s pretty fair to say that I am quite the paranoid person. I’m not so paranoid as to look back over my shoulder with wide eyes every time I walk down a quiet street. I only do that sometimes. But yes, I am a naturally skeptic person. I take absolutely nothing on face value, even if someone I’ve known for years says it to me. If something sounds too good to be true, it always is for me. I look for the lie behind every smile and every sign of deception in that firm handshake that might just be looking to grab my money and run. So, as an investor, you can perhaps gauge how I feel about stock brokers and stock broker fraud. To say it gives me the jitters is like saying the pope is Catholic; it’s a major understatement.
I’m not a conspiracy theorist; I don’t feel as if people are out to get me. But I do feel that while everyone is out to make money, some do it ethically and some don’t. It’s the unethical ones that make me fearful of absolutely everyone. And as an investor, there are tales I’ve heard about woe and misery that have kept me up nights thinking “what if that happens to me?” and I end up spinning an epic tale of love, lust, friendship and betrayal in my head. All in one night. If I made a set of books out of it, I’d be the next Archer or Rowling. Really. I just don’t trust banks and financial institutions and stock brokers. They just seem so unscrupulous.
Maybe I’m alone, but I’m just not comfortable with the idea of going to sleep one night with my value at ‘X’ and waking up the next morning to find that my value is now at ‘X minus one zillion’. Stock broker fraud is something that scares the ever-loving shit out of me. And yes, some of it might be my own fault, but then I look at how the financial crisis ravaged us as a nation and as a global community and feel as if the greed of stock brokers and banks can know no bounds some times. The financial industry was in on the subprime lending mess and the shambles that followed. It’s why I’ve kept a close watch on my stock broker.
Dishonest stock brokers can look to
- churn your account
- give you the wrong advice
- steer you away from a “breakpoint”
If you stay on your guard, you can notice things going wrong long before it goes tits up and while you don’t have to watch your account around the clock (even I don’t do that!) regular checks and questioning won’t hurt. If something doesn’t add up, get a second opinion from someone trusted. Follow your gut when it comes to dealing with potential stock broker fraud; it’s better to be safe than sorry.