Stockbroker fraud refers to misconduct by investment professionals and includes the sale of unsuitable or risky investments, the failure to disclose risk, self-dealing or breach of fiduciary duty, the sale of defective financial products, lack of training, failure to conduct due diligence, and the failure to supervise.[1]

Since 1987 and the United States Supreme Court's holding in Shearson/American Express, Inc. v. McMahon, [2], investor claims against stockbrokers and brokerage firms are heard in arbitration before the Financial Industry Regulatory Authority or FINRA.[3]

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