Inside Small Business | Small Business & Home Business Marketing

I think my employees see me as a buddy rather than a boss. Is that a bad thing?

Being a buddy not a boss with your employees is not a good idea. It inhibits you from making tough decisions and exercising your legitimate authority to get things done. Sooner or later you will find yourself in the position of having to make a decision that your employees do not like or need to provide them with some tough feedback on the quality of their work. If your relationship with them is that of a buddy you may find yourself backing off because you know they will not like it. That is not to say that you can’t be friendly and pleasant in your interactions with your employees – in fact you should be, however you should create some distance between you and your employees which so that you can take managerial action when you need to. A way of changing the nature of your relationship with them is to change your interactions with them. Keep some distance between you both at work and socially. Treat people fairly and consistently but make sure that they know what you expect of them. Become a leader! In the long run your employees with thank for it because everyone appreciates good leadership.

Related Topics: Boardroom, Entrepreneurial, Human Resources    No Comments    

The Investor’s Lawyer: Common Stockbrocker Fraud

Joel Beck, The Beck Law Firm, LLC

In my last column, I detailed ways to check out the background and disciplinary history of your prospective or current stockbroker and brokerage firm. Today, we’ll begin a series on the 3 primary types of stockbroker fraud, starting with unsuitable recommendations.

A broker has an obligation to recommend that his or her client invest in only appropriate, or suitable, investments, given the client’s financial condition and the investment objectives for the account. In making a recommendation to a client, a broker should usually consider the client’s age, net worth, investment objective, risk tolerance, tax situation and other holdings to determine whether any particular investment is suitable for that client.

An example: A broker makes an unsuitable recommendation when he advises an unsophisticated, elderly client of limited means who wants to preserve his or her assets, to invest in a speculative investment.

So what do you do as an investor to guard against unsuitable recommendations? First, understand the product that your broker is recommending, and investigate it yourself. Ask your broker why the product is appropriate for you, and ask specific questions about the product. Find out what the risks are, what the fees and charges are, how long your money may be subject to withdrawal penalties and what those penalties are. Also ask how this product compares to other investments in your portfolio, and how purchasing this investment meets your investment objectives. And, be sure to keep your broker informed about changes in your financial situation so that he or she can make the most appropriate recommendations for you.

Joel Beck, a former Enforcement Department lawyer for NASD (now FINRA), is now in private practice in the Atlanta, Georgia area. He opened The Beck Law Firm, LLC in July 2007. Joel’s practice focuses on legal matters relating to the financial markets. He represents investors in securities arbitrations, among other things. Learn more at his investor’s law blog at www.theinvestorslawyer.com and at www.thebeckfirm.com.

Related Topics: Business, Entrepreneurship, Leadership, Legal, Money/Finance    No Comments