Margin accounts involve borrowing money from the brokerage firm and using the borrowed funds to buy securities. All of the securities in your account are held as collateral against the loan, and the brokerage firm reserves the right to sell any securities at any time to pay down the loan without ever contacting you.
If your securities decline in value so far that they are worth less than the loan owed to the brokerage firm, you can even end up owing the brokerage firm a substantial sum even after all of your securities are sold.
Claims Against Your Brokerage Firm or Broker for Margin Borrowing Losses
If you have suffered losses due to margin borrowing, contact a securities arbitration lawyer at Dimond Kaplan & Rothstein in Miami, New York, and Los Angeles. We represent clients all over California, South Florida, New York, and the United States in stockbroker misconduct claims.
It is one thing for a sophisticated investor to borrow money to purchase securities. It is another thing for a broker to recommend margin borrowing to risk-averse investors who are not aware of the risks of margin borrowing. Our lawyers have extensive experience handling margin loss claims.
Consult with a Securities Arbitration Lawyer
We also do everything possible to minimize the burden on our clients. With a nationwide practice, we schedule arbitration hearings and mediation sessions at times and locations that are convenient to you.
Contact Dimond Kaplan & Rothstein in Miami, Detroit, Los Angeles, or New York to learn how an experienced securities arbitration attorney can benefit you and help you recoup margin borrowing losses. Contact us today at 888-578-6255 or fill out the contact form below.