FINRA rules require member firms to “establish and maintain a system of supervisory procedures (WSPs) to supervise the activities of its associated persons and the types [...]

Concentration occurs when an investment portfolio is not adequately diversified. This typically occurs when all or the majority of a customer’s portfolio or investible assets are [...]

Negligence occurs when a brokerage firm and/or its representatives fail to act in a reasonable and prudent manner. This typically happens when the broker or member [...]

The securities industry has specific rules governing securities transactions made by a broker for a customer. Brokers need prior authorization from a client before placing a [...]

Underwriting fraud involves schemes or attempts to mislead investors who purchase securities that are being offered to the public for the first time, whether though an [...]

Private placements are almost the opposite of an initial public offering (IPO). Securities that are sold pursuant to an IPO are registered with the SEC to [...]

Improper mutual fund sales practices comes in many forms. It can result when a broker recommends a mutual fund with an investment objective that differs from [...]

Conflicts of interests tend to be created in the investor/broker-dealer relationship at the retail level when a registered representative and/or broker-dealer receives a specific benefit for [...]

Churning is a term applied to the practice of a broker conducting excessive trading in a client's account mainly to generate commissions. Churning is an unethical [...]

Registered securities professionals and broker-dealers have an obligation to only recommend securities to an investor that are appropriate and in line with that specific investor’s financial [...]