Margin Account Claims

Margin accounts involve borrowing money from the financial firms and using the borrowed funds to buy securities. All of the securities in your account are held as collateral against the loan, and the firm reserves the right to sell any securities at any time to pay down the loan without ever contacting you. If your securities decline in value so far that they are worth less than the loan owed to the firm, you can even end up owing the firm a substantial sum even after your account is liquidated.

It is one thing for a sophisticated investor to borrow money to purchase securities. It is another thing for a broker to recommend margin borrowing to risk-averse investors who are not aware of the risks of margin borrowing. Our lawyers have extensive experience handling margin loss claims.