User:Stockbrokerfraud

Stockbroker fraud refers to misconduct by investment professionals and includes the sale of unsuitable or risky investments, the failure to disclose risk, self-dealing or breach of fiduciary duty, the sale of defective financial products, lack of training, failure to conduct due diligence, and the failure to supervise.

Since 1987 and the United States Supreme Court's holding in Shearson/American Express, Inc. v. McMahon,, investor claims against stockbrokers and brokerage firms are heard in arbitration before the Financial Industry Regulatory Authority or FINRA.