When You Need a Securities Lawyer
When You Need a Securities Lawyer
Financial scandals and market uncertainty have spurred many nervous investors into the offices of securities lawyers. The Enron fiasco may have been 16 years ago, but it is still fresh in the minds of many investors. Perhaps the only good thing that came out of that catastrophe – and others like it – is the call for more stringent securities law: the rules that govern financial tools like bonds, stocks and mutual funds. These are the regulations that exist to prevent shady financial practices, like market manipulation, insider trading and fraud. Securities lawyers are advocates who help shape these laws, make sure they’re enforced, and step in when they’re not.
What is a securities lawyer?
A securities lawyer is a solicitor who is an expert on the ever-changing terrain of financial investment regulations.
When do you need one?
Not everyone needs a securities lawyer. If you’re simply putting a little money in a savings account, a RESP or certificate of deposit, chances are you’d be better served taking the money you would have spent on legal fees, and investing it.
However, if you’re dealing with larger amounts of money, or are making complicated and/or risky investments, than a securities lawyer may be able to provide you with incredibly profitable guidance. The most obvious time you need a securities lawyer is when you’ve been the victim of financial malpractice. Securities lawyers specialize in helping you recover your losses.
Protect Your Money
Of course, not everyone realizes they could have benefited from the advice of a securities lawyer until it’s too late. Other than hiring a securities lawyer when you need to in the first place, here are some other tips to help you protect your money.
Go with experienced, reputable financial professionals. While some people may find the term “reputable financial professional” to be as oxymoronic as “reputation used-car salesman”, keep in mind they do exist, in both professions. Simply look for financial advisors with a solid track record and years of experience in the field. Not the guy you met in the gym locker room. He may be able to bench a Buick, but can he balance your portfolio? Can he keep your money safe?
Read the fine print. Of everything. Every single piece of documentation that pertains to your investments. Don’t sign on the line until you do, and if you have any questions, ask. If you feel stupid asking, imagine how stupid you’ll feel when you unknowing sign yourself into an agreement you don’t understand, and may not actually want.
Assess your risk tolerance. Before you make decisions or talk to anyone, determine how comfortable you are with risk. This will help you assess what kinds of investments are best for you. More risk inclined people will be more likely to dabble in the stockmarket, willing to suffer the lows for the highs. Risk averse people are more likely to prefer the solid ground of bonds or even mutual funds. If you know this prior to acting, then you are less likely to be swayed by the coaxing of others. Good financial advisors should help you make the most of your money within your comfort level.
