These Wall Street products take a simple idea and make it way too risky for ninety-nine out of a hundred investors. The simple idea is the Exchange Traded Fund, or ETF. These are index funds. Unlike mutual funds that trade only at the end of the day, ETFs can be bought and sold throughout the […]
Principal Protected Notes
In “A Short History of Financial Euphoria” the late economist John Kenneth Galbraith wrote, “The world of finance hails the invention of the wheel over and over again, often in a slightly more unstable version.” Witness then, yet another Wall Street innovation: the Principal Protected Note – aka, the Structured Note. Structured Notes are “IOUs” to […]
Auction Rate Securities
For a number of years, stockbrokers told individual and institutional clients with significant cash holdings that there was a safe way to earn a better return than money market funds, without risking a loss of principal. The place to get these returns was in Auction Rate Securities (ARS). It turns out the ARS were not […]
Common Forms of Stockbroker Misconduct
By Brian N. Smiley In recent months, the brokerage industry has been the subject of scathing headlines about fraud, corruption and conflicts of interest. The media have reported on abuses ranging from tainted research reports to outright theft by brokers. Investors have lost billions of dollars and confidence in securities markets has plummeted. Happily for […]
10 Ways to Protect Yourself Against Fraud
If you hope to prosper in today’s volatile market and lack the time or skill to choose your investments, you should find an honest, competent professional adviser, but that is easier said than done. Many brokers invest client funds with prudence and skill and put their clients’ interests first, even when inherent market risk brings […]
Principal Protected Notes
Smiley Bishop & Porter LLP is investigating Principal Protected Notes (aka, Structured Notes) commonly sold by major Wall Street firms. The notes are touted as safe investments with a guaranteed minimum rate of return with additional upside related to market or index performance. Unfortunately, Structured Notes are not as safe an investment as promised. Issues […]
Auction Rate Securities
Smiley Bishop & Porter LLP has represented clients with significant losses resulting from investments in Auction Rate Securities (ARS). These securities were sold by virtually every major Wall Street firm and were marketed as a highly liquid, safe investment equivalent to CDs or money markets, but with a higher interest rate. In reality, the auction market was […]
Employment Disputes
Our employment law practice continues to be quite active as many brokerage firms have restructured and consolidated after mergers and acquisitions. Brokerage firm employees have been dismissed, offered severance packages or been reassigned to new positions. Our law firm has been called upon to advise many clients with regard to the new employment contracts or […]
Top 10 Tips for Dealing With Your Stockbroker in a Bear Market
By Brian N. Smiley If you are going to make money in today’s unpredictable market and don’t have the time or the skill to make your own investment choices, you may have to select a professional advisor to help you. But that is easier said than done. As a group, stockbrokers are no more or […]
Reading and Understanding Brokerage Account Statements
Co-Authored by J. Michael Bishop AAII Journal Every month, individual investors across the country receive brokerage account statements. Many investors find it difficult to understand the information contained in the statements and after a quick review of their account values never look at their statements again. There is, however, a method behind the seeming madness […]
