According to the NASD, a broker can only recommend "a purchase or sale of a security after determining that a recommendation is suitable for that customer".
In making an investment recommendation to a client, a broker must make a recommendation that is consistent with the customer's risk tolerance, needs and investment objectives. A broker has a duty to 'know his client' and only recommend investments or strategies that are suitable for that client.
The broker must also have a reasonable basis for making his recommendation.
An investor's amount of market experience, as well as his present financial condition, are important facts to be assessed prior to pursuing a claim.
To help us evaluate whether you have a claim regarding "Suitability", call The Bernstein Law Firm, at (858) 505-8000, or contact us for a free initial consultation with a Miami lawyer.