Inside Small Business | Small Business & Home Business Marketing

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.

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Announcing Blog Design by Logoworks

New Blog Design Offerings and Free Templates from Logoworks by HP!

According to a recent survey by Forrester, 24% of companies have considered implementing Web 2.0 initiatives as a priority in 2008 – and 27% of companies are specifically considering creating blogs.⁽¹⁾ As communication has gotten easier and faster with the Internet, it’s no wonder businesses are increasingly looking to become even more interactive with their customers online. Interactive mediums such as blogs provide a great opportunity to keep potential customers informed and engaged on the latest news or hot product while also allowing direct feedback (or public praise!) on ways to improve business.

However, many small businesses and even marketing teams within larger companies face several challenges. They often don’t have the technical knowledge to develop their own blogs and other Web 2.0 programs or aren’t sure where to go for help.

Keeping this in mind, Logoworks by HP has introduced several new affordable and versatile blog design offerings to help businesses ride the Web 2.0 wave and start building customer interactivity and perhaps, even communities. With the new custom blog design packages, businesses can now communicate directly with customers in a more open yet still highly, professionally branded forum that adds a personal touch to any commercial website regardless of the business’ size. Small businesses can now work with Logoworks’ expert graphic designers to affordably create a custom blog that’s as unique as their business. With four different offerings to choose from starting at just $449, businesses on any budget can enjoy a customized blog design that coordinates with their website.

Logoworks by HP also introduced free blog templates allowing companies on shoestring budgets to get in the game and start interacting with their audiences right away. Developed by award-winning designers, the templates run the gamut from fun and whimsical to contemporary and elegantly simple. With such a wide variety of styles, folks will undoubtedly find a template to suit their personality or business.

Additionally, we’ve updated the Logomaker design tool for a dramatically improved logo design experience. Logomaker 2.0, which will be available the week of May 12, delivers an enhanced design experience with a new and improved user interface and updated design choices for the DIY small business owner. Improvements to the user experience include the ability to save favorite icons, enhanced help functionality and stronger search technology to help users find the icon that is right for their business. Also, this enhanced functionality allows small businesses to create a free logo for their website in mere minutes.

For small businesses eager for an introduction into blogging, Logoworks by HP is also hosting a free webinar about business-related blogging on Wednesday, May 7. Chris Baggott, small business expert and successful business blogger and founder of Compendium Blogware, will share his insights about blogging for business purposes. The session will touch on a variety of issues from the basics such as what a business blog is (and can do for businesses) to how to setup and maintain a successful blog.

Through this expanded range of blog design offerings, HP continues to provide small businesses with tools and expertise to help ease the stress and technical knowledge necessary to participate in the rapidly growing Web 2.0 arena and ultimately, better connect with their customers.

For more information about our new blog design offerings, visit www.logoworks.com/free-blog-design. To register for the free Logoworks by HP Blogging Webinar on Wednesday, May 7, visit http://logoworks.com/webinar2/.

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