Stock Broker Misconduct

Stock broker misconduct refers to unethical or illegal actions by brokers when handling client investments. This can include practices such as misrepresenting investment risks, churning (excessively trading to generate commissions), insider trading (using confidential information for profit), or failing to follow a client’s investment strategy. Such behavior can lead to financial losses for clients and undermines trust in the financial system. Regulatory bodies, like the Securities and Exchange Commission (SEC), oversee brokers to ensure they act in the best interest of their clients and maintain market integrity.