Investment and Securities Blog
Welcome to the Law Office of Scott Lane Blog. Here you will find information to help you to be a better-informed investor, including recent regulatory actions, information on specific investment products and general investment news. If you have questions or would like to suggest topics for future posts, please contact me.
With the recent volatility in the stock market, investors’ equity portfolios purchased on margin are exposed to the dangers of a margin call.
Be aware that titles such as “financial adviser,” “financial professional,” “investment professional,” and the like are meaningless when it comes to what duty is owed to you. How they are licensed will tell you what standard of care is owed to you as the customer.
As the Wall Street Journal notes in its recent article “Investors Can’t Get Enough of Wall Street’s Sucker’s Bet,” “the distinction between an investment and a gamble lies in the odds of success.” Leveraged and inverse exchange-traded funds often have “odds resembling a casino game.”
Investor advocates and securities regulators have long warned of the risks of purchasing private placement offerings due to the lack of information about the offerings and the lack of liquidity in the investment. Now, according to a recent study conducted by the Wall Street Journal, there is an additional risk factor to contend with.