Via Investor's Watchblog.
Among the questions I get most often from reporters covering tips on protecting investors from investment fraud is: ” If the investor stays with a recognizable name, aren’t they safe?” My answer is always the same: ”Absolutely not.” The interviewer is usually surprised. The thought that Morgan Stanley, or Merrill Lynch, or A.G. Edwards would steal from a client does not seem to compute. And yet, it’s the way things are. Investors are no safer with a big-name brokerage firm than with any other.
Doing business with a big name brokerage firm can actually put an investor at greater risk of fraud to the extent the investor believes that a big name firm would never take advantage of its customers. With his or her defenses lowered, and his or her antenna down, the investor becomes a sitting duck for brokerage firm misconduct.
No comments:
Post a Comment