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In certain situations a broker may be liable for failing to allow a customer to hedge their portfolio. Liability in this context usually arises when a customer has a portfolio concentrated in few companies or few industries leaving the customer open to devastating losses if those companies or sectors turn sour.
Liability for a failure to hedge is a reflection of a broker's duty to make suitable recommendations which generally encompasses the use of sound financial planning including diversification. In some situations it would be unsuitable for a client to diversify a large holding in one or more securities; however, this does not discharge a broker's duty to make suitable recommendations, including a recommendation to hedge the portfolio.
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If you believe that you suffered losses because your broker failed to recommend an appropriate hedging strategy, you have certain rights which you should be aware of, rights which may provide you an opportunity to recover your losses from your stockbroker or brokerage firm.
At Burg Simpson Eldredge Hersh & Jardine, P.C., our securities fraud attorneys represent people whose stockbrokers failed to make suitable recommendations about their investment transactions. We'll evaluate your claim for free and won't charge you any attorney fees unless and until we win or settle your claim. Please call or email us today.
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Burg Simpson Eldredge Hersh & Jardine, P.C. is a law firm serving the Rocky Mountain Region. The firm has offices in Denver, Colorado, Cody, WY, Cincinnati, Ohio, and Phoenix, AZ. The Firm is responsible for the content on the website,this information is not to be interpreted as providing legal services,
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