Call Now For a Free Consultation:
(614) 502-6165

More About Risk Tolerance and Investment Misconduct

Your general risk tolerance is one of the most basic considerations when it comes to investing, and your broker or financial adviser should be paying attention. Investment misconduct lawyers see many unsuitable investment cases that involve a financial professional ignoring a client’s risk tolerance, and it happens more often than you might think. That’s part of the reason it’s so important to understand the relationship between your risk tolerance and your own portfolio.

What Is “Risk Tolerance”?

Your risk tolerance is essentially your ability to withstand declines in your portfolio. When determining your risk tolerance or attitude toward risk, you will want to focus on your own short- and long-term investment goals. What do you hope to accomplish with a particular investment? What happens if you lose your initial investment? What kind of time frame are you looking at? Can you handle some short-term losses for a better return over time? Discuss these kinds of concerns with your broker or financial adviser and always carefully consider your risk tolerance.

What Does That Have to Do With Investment Misconduct?

Unfortunately, some financial professionals may put their needs above the needs of their clients and, for example, ignore a client’s risk tolerance to generate more commissions or more fees on an unsuitable investment. Your broker or financial adviser has a duty to recommend investments that are suitable for you based on a number of factors, including your current financial circumstances, your investing goals, and your tolerance for investment risk. If he or she fails to take these elements into account and you lose money, then you may have a claim.

If you believe you have lost money because your broker recommended an unsuitable investment, it’s important that you reach out to someone who can help you decide the steps to take next. The investment misconduct lawyers with Meyer Wilson have represented hundreds of investors across the nation in stockbroker mediation, arbitration, and litigation, and we encourage you to speak with us if you need help. Please give us a call today to schedule a completely free, no-obligation case evaluation with an experienced unsuitable-investment lawyer.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram