Investment Terms and Concepts

Limit Order – South Florida Broker/Dealer, Investment Advisor and Account Executive Breach of Fiduciary Duty, Negligence, Breach of Contract, Mismanagement and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: April 20, 2014 | By Russell L. Forkey, P.A.

Limit Order – South Florida Broker/Dealer, Investment Advisor and Account Executive Breach of Fiduciary Duty, Negligence, Breach of Contract, Mismanagement and Negligent Supervision FINRA Arbitration and Litigation Attorney:

Limit Order:

A limit order is an order to buy or sell a stock at a specific price or better. The specified price can be different from the market price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute. A limit order can only be filled if the stock’s market price reaches the limit price. While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock. By way of example, if an investor wants to purchase shares of ABC stock for no more than $10. The investor could place a limit order for this amount that will only execute if the price of ABC stock is $10 or lower.

Market Order – South Florida Broker/Dealer, Investment Advisor and Account Executive Mismanagement, Breach of Fiduciary Duty, Negligence and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: April 20, 2014 | By Russell L. Forkey, P.A.

South Florida Broker/Dealer, Investment Advisor and Account Executive Mismanagement, Breach of Fiduciary Duty, Negligence and Negligent Supervision FINRA Arbitration and Litigation Attorney:

Market Order:

A market order is the most frequently placed type of order. A market order is an order to buy or sell a stock at the best available price. Generally, this type of order will be executed immediately. However, the price at which a market order will be executed is not guaranteed. It is important for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed. In fast-moving markets, the price at which a market order will execute often deviates from the last-traded price or “real time” quote.

Corporate and High Yield Bonds – South Florida Corporate and High Yield Bond Breach of Fiduciary Duty and Unsuitability FINRA Arbitration and Litigation Attorney

Published on: March 21, 2014 | By Russell L. Forkey, P.A.

Corporate and Corporate High Yield Bond Breach of Fiduciary, Unsuitability, Churining and Unauthorized Purchase and Sale FINRA Arbitration, Litigation and Probate Attorney:

If you are considering or if your account executive or investment advisor is soliciting you to purchase, hold or sell a corporate bond, you may wish to read this post to refresh your understanding of corporate bonds or, if you are an unsophisticated invesotr, arm youself with questions to ask your investment professional.

What Are Corporate Bonds?

Exchange Traded Funds (ETFs) – Florida Elder, Senior and Retirement Financial Abuse and Exploitation Unsuitability, Excessive Trading (Churning), Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration, Litigation and Probate Attorney

Published on: March 21, 2014 | By Russell L. Forkey, P.A.

Exchange-Traded Funds (ETFs) – Florida Elder, Senior and Retirement Financial Abuse and Exploitation Unsuitability, Excessive Trading (Churning), Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration, Litigation and Probate Estate Attorney:

Exchange-Traded Funds (ETFs):

The solicitation of ETFs by brokerage firms and their account executives seeking to convince their clients to purchase and sell EFTs has recently been on the rise. Thus, claims of unsuitability, excessive trading (churning), fraud and misrepresentation relating to this activity has likewise been increasing. The active purchase and sale of ETFs has become a target rich environment for increased commissions. Because ETFs are offered by prospectus, it is important for the investor to make sure that he or she fully understands all of the terms the particular ETF, the ramifications of investing therein and the costs associated therewith, especially if actively traded.

Oil and Gas Limited Partnership and Oil and Gas Offering Fraud, Misrepresentation and Mismanagement Litigation and Arbitration Attorney

Published on: February 8, 2014 | By Russell L. Forkey, P.A.

Oil and Gas Limited Partnerships and Oil and Gas Offering Fraud, Misrepresentation and Mismanagement – South Florida, including Fort Lauderdale, Pompano Beach, Deerfiled Beach, Boca Raton, Boynton Beach, Delray Beach, Lake Worth and West Palm Beach, Litigation and Arbitration Attorney

An oil and gas limited partnership is legally set up using the same format as any type of limited partnership. It is created by filing articles of limited partnership or its equivalent in the state of its domicile. For example, Florida Statute, Chapter 620 governs the legal requirements that must be followed in the formation, operation and dissolution of the limited partnership, whether it is engaged in the oil and gas business or not. This post is limited to a general discussion of an oil and gas limited partnership.

An oil and gas limited partnership is made up of one or more general partners and one or more limited partners. Generally, it is structured to find, extract, and market commercial quantities of oil and natural gas. These types of investments are usually offered by prospectus, in the case of a public offering, and by a private offering memorandum, in the case of a private offering of securities. In either offering document, it is important to consider, among other things, who is making the offering, which brings to the forefront such items as experience, prior success and financial stability. The next important section of the document relates to the “risk” factor section of the document. Usually, in bold type there is a phrase such as “this offering involves a high degree of risk and should be considered only by those investors who can stand to lose their entire investment.”

Nonpublic Information – South Florida Securities and Investment Nonpublic Information FINRA Arbitration and Litigation Attorney

Published on: February 8, 2014 | By Russell L. Forkey, P.A.

Nonpublic Information Florida Securities and Investment Fraud, Misrepresentation and Omission FINRA Arbitration and Litigation Attorney:

Nonpublic information is information about a company, either positive or negative, that will have a material effect on the stock or bond price when it is released to the public. Insiders, such as corporate officers, members of the board of directors, and third parties associated with the company, including public relation firms, certified public accountants and attorneys are not allowed to trade on material nonpublic information until it has been released to the public, since they would have an unfair advantage over unsuspecting investors.

Please keep in mind that the above 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 legal or investment advice. If you have any questions about the contents of this post, you should contact a qualified professional.

Short Selling – Illegal Short Selling Florida Securities and Investment Fraud Litigation and Arbitration Attorney

Published on: February 4, 2014 | By Russell L. Forkey, P.A.

Illegal Short Selling – Florida Illegal Short Selling, Securities and Investment Fraud Litigation and Arbitration Attorney:

Securities and Exchange Commission v. Revelation Capital Management Ltd. and Christopher P.C. Kuchanny, Civil Action No. 14-cv-0645 (S.D.N.Y., filed January 31, 2014)

SEC Charges Bermudian Investment Adviser and Principal for Illegal Short Selling

Support Level or Resistance Level – Florida Securities and Investment Mismanagement and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 21, 2014 | By Russell L. Forkey, P.A.

Support Level or Resistance Level – South Florida, including West Palm Beach, Lake Worth, Delray Beach, Royal Palm Beach and Boynton Beach, Securities and Investment Mismanagement and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

A support level is a price level at which a security tends to stop falling because there is more demand for the security than supply. Technical analysts identify support levels as prices at which a particular security or market has bottomed in the past. When a stock is falling towards its support level, analysts say it is “testing its support” level and that the stock should rebound as soon as it hits the support price. If the security continues to drop through the support level, its outlook is considered bearish. The opposite of a support level is a resistance level.

Please keep in mind that the above 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 legal or investment advice. If the reader has any questions concerning the contents of this post, you should consult a qualified professional.

Asset Management, Cash Management or Active Assets Account – South Florida Broker/Dealer Fraud, Mismanagement or Breach of Fudiciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 6, 2014 | By Russell L. Forkey, P.A.

Cash Management, Active Asset, Asset Management or Wrap Accounts – Hollywood, Fort Lauderdale, Margate, Davie, Pompano Beach, Boca Raton and Royal Palm Beach, Florida FINRA Arbitration and Litigation Attorney:

Cash Management, Active Asset, Asset Management or Wrap Accounts describe accounts at brokerage firms, banks or savings institutions that combine banking services like check writing, credit cards, and debit cards with brokerage features of buying and selling securities on margin.

Because of the nature of these accounts, it will be necessary for the customer to execute various agreements, which specifically set forth the terms of the relationship and the charges associated with each activity. Consequently, it is important that you read and understand all of the material terms of the agreement.

Mutual Fund Switching – South Florida Mutual Fund Fraud and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 4, 2014 | By Russell L. Forkey, P.A.

Unsuitable and Inappropriate Mutual Fund Switching – Stuart, Hope Sound, Jupiter, West Palm Beach, Lantana, Delray Beach, Lake Worth and Boca Raton, Florida FINRA Arbitration, Mediation and Litigation Attorney:

Mutual Fund Switching:

Mutual fund switching is the moving of assets from one mutual fund to another, either within the same fund family or between different fund families. There is no charge for switching within a no-load family of mutual funds. A sales charge might have to be paid when switching from on load fund to another even within the same family of funds.