Does Your Broker Owe You Money?

...you should read this book. If not, Dan Solin's book, DOES YOUR BROKER OWE YOU MONEY? is an excellent primer for those wanting to understand the 'inside skinny' of the brokerage business, responsibilities of brokers, alternatives to aggreived investors and possibilities for recovery if damaged.I've been in the litigation consulting game (as a consulting and testifying expert) for close to a decade now, primarily in securities, and can say that Solin's book is the first book I've run across bringing all the pieces together in a cogent manner. While other books are out there and new ones arriving daily, Solin's book stands out as the cream of this crop. {Solin, a plaintiff's attorney, has been in the game for 30+ years. There will be and are many who will think this is his personal soapbox to drum up more business. I fervently disagree. Solin presents a solid, fact-based picture of many of the misdeeds inflicted by unscrupulous brokers. There is very little fluff here.}Solin walks the reader through most aspects of a relationship with a broker as well as identifying the "warning signs" within the relationship for any investor to observe. In the first chapter, "Your Broker Just Might Owe You Money," Solin describes the 'chatter' many brokers use to market themselves and pick off unsuspecting investors. He then goes on to describe areas of broker fraud and NYSE/NASD/SEC violations, which he details in later chapters.If there is one chapter I would strongly suggest most retail investors read and reread, it is Chapter 4, "Unsuitability: What's a Good Investment Strategy for You?" By and large, most lawsuits I've consulted/testified in have allegations of unsuitable investments. Simplisticly, unsuitability can be defined as a broker's disregard for an investor's risk tolerance and investment objectives. This disregard is primarily manifested in recommendations from a broker to buy a stock considered outside the risk paramters and investment objectives. For instance, many retired individuals have an IRA or 401(K) account with a broker. In most cases, these accounts are very conservative and thus, have a risk profile of 'conservative' and investment objectives to match (i.e. 'safety of principal' and 'income' are the primary investment objectives). An unsuitability claim would arise if a broker induced/encouraged/suggested a stock considered outside these parameters, say, ones fitting the 'growth' profile or 'aggressive growth' profile. In any event, this practice, particularly during the "Bubble" was prevalent as many investors wanted to participate in the market boom and were easy prey to rougish brokers.In later chapters, Solin describes the lawsuit process, which is actually an arbitration process. Significantly all investors, when signing their new account papers with a brokerage house, agree to binding arbitration to settle disputes as opposed to having their dispute heard state or federal court. The arbitration process is simpler, quicker (in mos

Dan Solin has provided a very nice primer with detail to the person who is wondering if they lost money due to the market or due to their broker.When the market meltdown began in March 2000, the bad habits and unrestrained greed of unprofessional brokers became as transparent as handi-wrap. The customers who were lured into unsuitable investments due to the way in which commissions were paid is exposed for what it is in this book.Whether trying to recover losses for mutual funds or simple stock transactions, Dan Solin hits the mark and provides plenty of illumination on an otherwise private and hard to understand business. This is a must read for anyone who is beginning to invest or trying to determine how to recover monies lost in the meltdown.

Mr. Solin's book is an indispensable guide to anyone with a brokerage account. For those who suspect wrongdoing on the part of their broker, this book is a roadmap to getting their money back. For investors looking to become better informed, Mr. Solin draws back the curtain on how Wall Street works revealing hidden costs and conflicts of interest that are rarely, if ever, disclosed by brokers.As a twenty year veteran of Wall Street and as a secutities arbitration attorney, I can say without reservation that Mr.Solin's in depth analysis of broker behavior is right on target. This book is a must read for anyone with a brokerage account as well as any attorney who is new to the complex field of securities litigation/arbitration.Congratulations to Mr. Solin for providing a much needed guide to uncovering and preventing broker fraud.

This was a terrific read, especially for a "business" book. It explains in simple, interesting terms all sorts of concepts that are essential for understanding how markets work and how to manage risk. For the first time I understand that investing in the market, done properly, can mean "risk management" and steady growth for my savings, not some "get rich quick" gamble that could bankrupt my retirement.I have very little experience as an investor, however, I always believed a reputable broker would be a good resource for investment planning. This book was a real eye opener. It clearly explains how the interests of even the most prestigious brokerage houses are at odds with their clients' interests. It exposes the myth that the broker can give you an "edge" because of his experience, his research or his "inside" information. While I found the section dealing with recovering losses interesting, prevention is much more important to me. The real revelation for me was how easily I could devise a low cost AND effective investment strategy without using a broker. I don't want to sue anyone. Thanks to Mr. Solin, I don't think I'll ever be in that position.

Several years ago, as a summer intern in a large financial services company, I was given the opportunity to attend an Investment Advisor (Broker) training seminar. The experience was an eye-opener. The entire class was devoted to lead generation, not sound investing techniques. Those with some prior sales experience shared with others their methods of obtaining the names of wealthy (potential) clients. Among the methods included was slipping the receptionist at the local country club a twenty dollar bill for the club registry. On and on this went, with no discussion of investing fundamentals. For many years in the 1990's, the knowledge that many brokers were, at best, modestly informed salesmen was confined to industry insiders and experienced investors. Dan Solin aims to bring this understanding to a wider audience, having worked with those who have either been swindled, misled, or simply given very poor investing advice. From reading this book, my impression of Mr. Solin is that he has simply had enough. The book combines three main components - 1.) An overview into the conflicts inherent in the broker-client relationship and how these conflicts often hurt the retail investor 2.) A summary of Modern Portfolio Theory and its implications for the average investor and 3.) A discussion of avenues available to investors who believe they have a claim against their broker and/or brokerage firm. The writing is very accessible and conversational, and Mr. Solin writes as if he is very eager for the reader to grasp this information. For many, parts of this book will be a review. However, this is the first book I have seen that provides an explanation of the theoretical underpinnings behind indexing (passive investing), uses this theoretical framework to question the value of many broker offered services, and then offers the investor options if his or her accounts have been abused or improperly handled. And writing the book off as the author's attempt to generate more business is too convenient, too pat an answer. I think that his preferred outcome is to educate, partly so that he won't have to hear about retirees having their money stolen by predatory brokers. In short, an excellent primer for individual investors.