The only way investors can protect their investments is to make those who steal from them pay, whether through a securities class action, an individual action, a FINRA arbitration, or a shareholder derivative action.
Why We Make it Our Mission to Protect Investors
Americans invest trillions of dollars for innovation, to create jobs, to save for their kids’ colleges, to fund their golden years, to buy their dream homes–to have the lives they always dreamed of.
The Bureau of Economic Analysis estimates that investors add over $1.2 trillion in value to the U.S. economy every year.
Plus, American investment services are a $200 billion a year industry and grew steadily during the recession. They employed over 4 million people in 2012.
Investor Losses Due to Fraud, Greed and Oppression Total in the Billions of Dollars Annually
No one can deny that investment is an inherently risky business. Whether you invest in the stock market, buy debt, own mineral rights, invest privately or through a broker, there are certain negative contingencies that are built into the price of your investment. But the law protects investments–and the investment market–from things such as:
- Fraud about the nature of the business;
- Lies about a business’s financial performance;
- Self-Enrichment by Management at Shareholders’ Expense;
- Abuse by controlling shareholders of the business or other shareholders;
- Squeezing out minority shareholders; or
- Investment brokers or advisers enriching themselves at client’s expense.
Being Vigilant Protects Investors in Two Ways
While there are agencies such as the SEC that are supposed to be investor watchdogs, they are generally passive and wait for investor initiation.
Investor vigilance–or investor activism–can be beneficial to you and your portfolio in two, quantifiable ways:
It allows you to recoup the losses you should not have had.
The mere fact of vigilance will, over time, enhance the protections for investors. (Read More)
A business that has stronger minority shareholder protections can easily see a 5% to 10% increase in the value of the shares of the business. (Read More)
That is not only good for you as an investor, it is good for all investors.
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