Brokerage Fraud

by Tracy Pride Stoneman and Douglas J. Schulz

Book Overview

The public has been bombarded with the benefits of investing. Yet, what brokerage firms and stockbrokers fail to tell individuals is how the securities industry bends and breaks the rules to the... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0793145554
• ISBN13: 9780793145553
• Release Date: November 2001
• Publisher: Dearborn Trade
• Length: 336 Pages
• Weight: 1.58 lbs.
• Dimensions: 0.9" x 6.4" x 9.2"

Customer Reviews

Quite the surprise

Actually, I picked this book up at my local library because it was just sitting there and it didn't cost anything. But to my surprise it was a very informative book. Like all books and readers, no shoe fits all but the author did try and was successful as far as I'm concerned. After this reading, I definitely see my broker in a different light. As an options trader, I've learned things that were right there in front of me and just didn't see it. Great info regarding industry tricks. There was too much detail in certain areas but you can speed read those and continue to you find the gems that appeal to you. Very good read. Best wishes

Brokerage Fraud -- Required reading for the investor

Had "Brokerage Fraud" been available to my wife and I eight years ago, it may very well have saved us the fortune we lost to a mercenary industry that promotes itself as caring and responsible, when in fact it cares mostly for itself. "Brokerage Fraud" might have been subtitled, "What You Don't Know About The Stock Brokerage Industry Could Wreck Your Dreams." Think of this book as your insurance policy against a devastating financial reversal that could snatch away your home, your business, your childrens' educations, and/or your life savings. "Brokerage Fraud" is frank and friendly, organized, comprehensive, easy to digest -- and quite unique, too, because the distinguished authors tell all about an autonomous, all-powerful institution that routinely sheers the uninitiated. My wife and I learned at great cost that the stock brokerage industry profits hugely at the expense of those who trust it too much and know it too little. This important, well-crafted book levels the playing field by giving individual investors the information and the strategies they require to prosper in what's essentially an insider environment.If you only read one investment book, this is it, and we can't recommend it too highly.

Informative, entertaining, and humorous!

I would recommend this book not only to those persons with little or no experience in the investment world, but to those with some knowledge of and experience in the industry! I am an attorney and an investor. Yet, I must say that each chapter of 'Brokerage Fraud' brought new information and insight that is invaluable.Readers of this book will find it informative, entertaining, and at times quite humorous.This book will also arm you with enough information to make intelligent decisions about your money and with whom to place it. You might even want to send this book to your current broker!Frank E. Needham

Kudos to the authors

As a former broker and current investor, Brokerage Fraud is a compelling read. The authors pulled no punches and gave an honest & informative investigative report on brokers. An investor who is serious about his/her investments should immediately read this book. Wall Street is not perfect nor are its brokers; however there should be no excuse for an investor not to inform himself with the ammunition that this book provides. Ask your broker questions, don't be shy - a good honest broker has nothing to fear. Kudos to the authors of this book for showing the public how business should be conducted.

Warning: Stock Brokers Can Be Dangerous to Your Wealth!

You need to pick a broker more carefully than you pick a physician or a lawyer. Do you know how? Even those who think they know what to look for may not. I recommend that anyone who has a brokerage account read this book. Brokerage Fraud may be the highest return investment you make in 2001.As the authors point out, many of the 650,000 stock brokers are honest, hard-working people you can trust. But there are also firms run by criminals who are simply out to separate you from your life savings. In between, there are conflicts of interest, temptation, and bad habits that can be costly to you. The best way to keep your money safe is to know how to select, work with, and monitor your broker. Should you have a problem, this book points out when and how you should try to seek redress. But don't expect to succeed or to recover what you lost. Most people wouldn't be able to write such a book. Problems with brokers normally are handled through arbitration, as required in the contract you sign when you open a brokerage account. The results of such arbitrations are usually secret. Ms. Stoneman has worked as an attorney on arbitrations in this area, and can speak from her experience. Mr. Schulz was a stock broker and does expert witness work during arbitrations. In the foreword, Kurt Eichenwald (senior writer at The New York Times and a best-selling business author) notes, "Don't pay brokers for trading -- just for making money." But you'll have a hard time finding a broker who will be willing to get paid on that basis. As the old saying goes, "Where are the customer's yachts?" In 2000, the average stock broker had an income of $180,300 and was part of a household with a total net worth over a million dollars. How many of their customers are doing as well from their investments? The basic problem is: "Every day hundreds of investors are defrauded of millions of dollars. Yet the vast majority does not pursue a remedy." Part of the problem is that the brokerage firms deny doing anything wrong early in the game. Complaints not in writing will be ignored. Write a complaint without an attorney to help you, and you may weaken your case. Legal redress is going to be expensive . . . even on a contingent fee basis (often running from 33-50% of the recovery). Many people don't know that SEC regulations grant many rights to investors in dealing with their brokers. This book explains what those rights are. The horror stories of what to avoid are worth the price of the book. For example, if you place an order on-line that disappears, you may call up and be told it is gone. So you place another order. Sometimes, the first order shows up and you have two orders -- both of which are executed. Some firms will stick you with the problem. In extreme cases, this may trigger a margin call and you may get sold out of both positions at an enormous loss -- even before you know you have a problem. My advice after reading this book is: NEVER PLACE