Overconcentration Misconduct Attorney

Often, brokers will buy too much of a security for a customer, causing unnecessary risk by putting “all their eggs in one basket.” This can happen because the broker is overly enamored with some stock, or if the client is, or both. A broker’s job is not to be a fellow fan of a stock, but to give you reasonable advice to maintain a diversified selection of investments that are suitable for you, considering your investor profile. Even an overconcentration in a blue-chip stock like Exxon is dangerous. One bad event can cut a stock’s value in half or worse.