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Report the stockbroker to the SEC (securities and exchange commission)

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18y ago

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Can you sue a broker for buying stocks on margin when not authorized to do so?

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How can you sue your stock broker for unsuitable investments?

You would need to carefully read the contract between you and your broker. Generally, you would have to prove that your broker was professionally neglient or defrauded or misrepresented. I suspect your broker has a clause which warns you that the nature of financial investing is risky and that investments can go down as well as up. In short your broker does not guarantee profits. If you are convinced your broker was neglient etc. You can file a small claims at your local courthouse-this is $2,500 to $5,000. If the amount exceeds this then you have to file differently and you will almost certainly get involved with lawyers. I would offer the opinion that you would have a very difficult case to prove, and even if you did prove it you would be unlikely to be paid a substantial judgment-a broker would more than likely file bankruptcy protection.