The words “market volatility” seem to be used now more than ever. One recent report from The New York Times said, “Market Swings Are Becoming New Standard,” a scary sentiment for investors. One possible explanation for the increased volatility is the use of computerized high frequency automated trading, which accounts for 60 percent of the…
Continue reading ›According to the Financial Industry Regulatory Authority’s “Disciplinary and Other FINRA Actions” report for August 2011, Bluechip Securities Inc. and Muhammad Akram Khan were disciplined and fined. Bluechip was censured and fined the amount of $15,000, while Khan was suspended from association with FINRA members for 18 months and fined $385,000. Both Khan and the…
Continue reading ›Former Nebraska City brokers Rebecca Engle and Brian Schuster were sent to prison for bilking investors out of more than $20 million — an amount which is, according to the Nebraska Department of Banking and Finance investigation supervisor Thomas Sindelar, the biggest securities fraud case in history of the state. The broker misconduct of Engle…
Continue reading ›The Financial Industry Regulatory Authority (FINRA)’s new Rule 2111 will help prevent broker misconduct resulting from a failure to adhere to the suitability standard by adding several factors to determining suitable recommendations. Previously, the only factors brokers were required to consider when offering investments to customers were investment objectives, tax status and financial status. Under…
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