Investment Terms and Concepts

CMO REIT – South Florida Securities and Investment Fraud, Misrepresentation and Mismanagement FINRA Arbitration and Litigation Attorney

Published on: May 19, 2013 | By Russell L. Forkey, P.A.

CMO REIT: South Florida Securities and Investment Fraud, Mismanagement, Misrepresentation, Breach of Fiduciary Duty and Breach of Contract FINRA Arbitration and State and Federal Litigation Attorney:

A CMO Reit is a specialize type of Real Estate Investment Trust (REIT) that invests in the residual cash flows of Collateralized Mortgage Obligations (CMOs). CMO cash flows represent the spread (difference) between the rates paid by holders of the underlying mortgage loans and the lower, shorter term rates paid to investors in the CMOs. Spreads are subject to risks associated with interest rate levels and are considered risky investments.

Please keep in mind that the information being provided for educational purposes only. Thus, it is not designed to be complete in all material respects. Consequently, it should not be relied upon for legal or investment advice. If you have any questions relative to the contents of this post, the reader should contact a qualified professional.

Chinese Wall – South Florida Securities and Investment Breach of Contract and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: May 19, 2013 | By Russell L. Forkey, P.A.

Chinese Wall – South Florida Breach of Contract, Breach of Fiduciary Duty, Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:

A Chinese Wall is an imaginary barrier between investment banking, corporate finance, and research departments of a brokerage firm and the sales and trading department. Because of the fact that the investment banking side, of a brokerage firm, has sensitive, non-public information about impending transactions such as takeovers, new stock and bond issues, divestitures, spin-offs and such, it is unfair and illegal for the trading side of the firm to use this non-public information for the benefit of its customers. Consequently, several SEC and stock exchange rules mandate that a Chinese Wall be erected to prevent premature leakage of this information.

Please keep in mind that this information if being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, this post should not be relied upon for legal or investment advice. If the reader has any questions concerning the contents of this point, you should contact a qualified professional.

FAQ About SEC Form 8-K – Florida Security and Investment Litigation and Arbitration Attorney

Published on: May 16, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission – Form 8-K.

There are a number of forms that companies are required to file with the Securities and Exchange Commission such as Forms 10-K, 10-Q and 8-K. Copies of these documents can be found on the SEC’s Edgar Website. It is suggested, if the reader is contemplating purchasing, holding of selling an SEC reporting company, that you go to the SEC Edgar Website to see what type of public information is available for consideration. This is true whether the reader is making his or her own investment decision or is contemplating the recommendation of an investment advisor.

As indicated above one of these forms is the Form 8-K. This form is used by companies to file current reports on the following events:

1.01	Entry into a Material Definitive Agreement
1.02	Termination of a Material Definitive Agreement
1.03	Bankruptcy or Receivership
2.01	Completion of Acquisition or Disposition of Assets
2.02	Results of Operations and Financial Condition
2.03	Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
2.04	Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
2.05	Cost Associated with Exit or Disposal Activities
2.06	Material Impairments
3.01	Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
3.02	Unregistered Sales of Equity Securities
3.03	Material Modifications to Rights of Security Holders
4.01	Changes in Registrant’s Certifying Accountant
4.02	Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
5.01	Changes in Control of Registrant
5.02	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officer
5.03	Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
5.04	Temporary Suspension of Trading Under Registrant’s Employee Benefit Plans
5.05	Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics
5.06	Change in Shell Company Status
6.01	ABS Informational and Computational Material.
6.02	Change of Servicer or Trustee.
6.03	Change in Credit Enhancement or Other External Support.
6.04	Failure to Make a Required Distribution.
6.05	Securities Act Updating Disclosure.
7.01	Regulation FD Disclosure
8.01	Other Events
9.01	Financial Statements and Exhibits

Please keep in mind that this information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post, you should consult a qualified professional.

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

Fixed-Income Investment – Florida Fixed-Income Abuse FINRA Arbitration and Litigation Attorney

Published on: May 15, 2013 | By Russell L. Forkey, P.A.

Fixed-Income Abuse, Fraud and Misrepresentation, Florida FINRA Arbitration and Litigation Attorney:

A fixed-income investment refers to a security or other type of investment that pays a fixed return. Types of investments that generally fall within this category are government, corporate, or municipal bonds, which pay a fixed rate of interest until maturity, and to preferred stock, paying a fixed dividend. Such investments are advantageous in times of low inflation but do not protect holders against erosion of buying power in a time of rising inflation, since the bondholder or preferred shareholder gets the same amount in interest or dividends, even though consumer goods cost more.

Fixed-income investments can also be adversely effected by rising interest rates and the credit-worthiness of the issuing authority. For example, as interest rates rise, the market value of the fixed income investment can decline as investors move to alternative and more attractive investments.

Investment Risk and the Average Investor – Florida Investment and Securities Risk FINRA Arbitration and Litigation Attorney

Published on: May 14, 2013 | By Russell L. Forkey, P.A.

Types of Investment Risk and the Average Investor – South Florida Investment and Securities Risk FINRA Arbitration and Litigation Attorney:

Generally risk can be described as action or inaction that can lead to a loss of some sort. It can be reduced or eliminated based on the action taken by the person that is exposed to it.

In the investment context, there are a number of commonly encountered types of risk some of which are set forth herein. Please keep in mind that this post is being provided for educational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If the reader has any questions concerning the contents of this post, you should contact a qualified professional.

Investment Strategy – Florida Common Stock and Bond FINRA Arbitration and Litigation Attorney

Published on: May 14, 2013 | By Russell L. Forkey, P.A.

Investment Strategy – Florida Common Stock and Bond FINRA Arbitration and Litigation Attorney:

An “Investment Strategy” is nothing more than a plan to allocate assets among various investment classes such as stocks, bonds, cash or cash equivalents, commodities and real estate. An investment strategy should be based on an investor’s outlook on such things as interest rates, inflation, economic growth while, at the same time, taking into consideration the investor’s age, tolerance for risk, amount of investable capital, and time horizon.

If a stockbroker or investment advisor has formulated an investment strategy for you, it is imperative that the investments and strategy recommend to you are suitable to meet your investment objectives. If, as an investor, you feel that this is not the case, it is time to seek legal assistance.

Investment Objective, Risk and Suitability – South Florida Fraud, Mismanagement and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: May 13, 2013 | By Russell L. Forkey, P.A.

Investment Objective, Risk and Suitability: Why are They Important?

An investment objective is, in reality, nothing more than a client’s financial objective, which assists a stock broker in determining what type of investments would constitute a “suitable” recommendation for a client. It is one of the fundamental factors that any attorney looks at in attempting to determine whether the investments purchased, held or sold, in a client’s account, were appropriate (suitable) for that client.

For example, if an investor is seeking income, assuming that the account executive tells the truth about the investment or knows how to properly analyze the same, the client might opt-out of purchasing an investment that does not pay any type of income (for example dividends) to its shareholders as the investment would not be suitable to satisfy an income objective. Conversely, if an investor is seeking growth of capital, he or she should consider investments that have a higher potential for capital appreciation then an investment whose primary function is to pay income to its holder. Another popular type of investment objective is total return. Obviously, this type of investment objective combines elements of the income and growth objective, attempting to maximize return.

Restricted or Lettered Securities – Florida Security, Investment and Business State and Federal Court Litigation and AAA Arbitration Attorney

Published on: May 8, 2013 | By Russell L. Forkey, P.A.

Restricted or Lettered Security – Florida Security, Investment and Business State and Federal Court Litigation and American Arbitration Association Attorney:

“Restricted” or “Lettered” Security generally describers a stock or bond that is not registered with the Securities and Exchange Commission. Consequently, these securities cannot be sold in the public market. When such a stock or bond is sold directly by the issuer to an investor, registration can be avoided if a letter of intent, called an investment letter is signed by the purchaser establishing, among other things, that the securities are being bought for investment purposes and not with a view to resale.

Normally, this investment letter requires the investor to acknowledge the fact that he or she has received sufficient information about the issuer to make an intelligent investment decision, understands that the investment involves varying degrees of risk (usually high risk) and that the investor realizes that he or she may loose their entire investment. From a practical investment standpoint, these types of investments are not appropriate for the average investor.

Making a Contract, Performing a Contract, Breaching a Contract – Florida Breach of Contract and General Business State and Federal Court Litigation Attorney

Published on: May 7, 2013 | By Russell L. Forkey, P.A.

Making a Contract, Performing a Contract, Breaching a Contract – South Florida Breach of Contract and Business Litigation Attorney:

A contract is a general, agreement by which rights or acts are exchanged for lawful consideration. To be valid, the contract must be entered into by competent parties, must cover a legal and moral transaction, must possess mutuality of obligation, and must represent a meeting of minds as to all material issues dealt with in the contract. Contracts can be written, oral or a combination of both written and oral agreements. Moreover, contracts can result from a series of communications that take place over a period of time. It goes without saying that countless transactions in our personal lives, finance and investments are covered by some type of contract.

A breach of contract action is one of the most common causes of action that forms the basis of lawsuits filed in this country. Depending on the circumstances, the action may be filed in state or federal court. However, if the contract between the parties contains an arbitration clause, the claim will be heard in that forum. Whether or not to include an arbitration agreement in a contract is a decision that is usually made at the time the contract terms are negotiated. This is not an issue that should be taken lightly because there are material pros and cons to such a decision.

General Partner – Florida Mismanagement, Breach of Fiduciary Duty or Breach of Contract Commercial and Business Litigation and Arbitration Attorney

Published on: May 5, 2013 | By Russell L. Forkey, P.A.

General Partner – Florida Mismanagement, Breach of Fiduciary Duty or Breach of Contract – Commercial and Business Litigation and Arbitration Attorney:

General Partner:

1. One of two or more partners who are jointly and severally responsible for the debts of the partnership.