New York, NY (PRWEB) March 14, 2013
Zamansky & Associates LLC is investigating financial advisors at major Wall Street brokerage firm over potentially dangerous margin levels in brokerage accounts. The investigation concerns whether financial advisors recommended unsuitable margin levels for conservative and moderate investors.
This past week, the market has fixated on the record Dow highs day after day. On March 13, 2013, Maureen Farrell at CNNMoney, reported that the Dow closed at an all time high for the seventh straight day. http://money.cnn.com/2013/03/13/investing/stocks-markets/index.html?hpt=ibu_c2
In conjunction with this rise, there have also been reports of increased levels of margin in the markets. On March 5, 2013, Seeking Alpha’s Doug Short reported in “NYSE Margin Debt And The S&P 500: A Sign Of Vulnerability?” that increased month-end margin levels are reflected on the NYX data website.
Heavy margin use is inappropriate and unsuitable for most conservative and even moderate investors, according to Jake Zamansky. “Despite its highs, the stock market is inherent volatile, so any margin borrowing done by an investor during a bull market rise, often leads to huge losses during a pull back,” he states. Investors with margin balances now may not realize that their accounts are too speculative and risky for them, until it is too late, Zamansky believes.
Zamansky is investigating whether financial advisors at major Wall Street brokerage firms have been recommending margin to their customers. If so, he contends, an investor may have a claim against their brokerage firm if the account crashes. An investor may also have a claim if the brokerage firm mishandles a sell out in response to a margin call, he believes.
What Brokerage Customers Can Do
If you would like to discuss your legal rights or a review of your brokerage accounts for inappropriate margin levels, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414