HOW TO RECOUP YOUR INVESTMENT LOSSES

A claim against your broker, investment advisor, or investment company may be your best way to recoup your recent stock market losses. While you are limited to bringing a claim in arbitration, you have a good chance of recouping much of the lost value due to a damage calculation called Net Out of Pocket (NOP). This is a calculation that determines your gains/loses in the market with the initial investment you made. Simply put, if you have a value lower than your initial investment, there is a good chance you can recoup the loss.

Recently, I spoke on the topic at a lecture sponsored by the Bar Association of the District of Columbia called "Investor Broker Relations in Uncertain Economic Times: An introduction to Arbitration Realities." In the program, I highlighted the process an investor brings before the Financial Industry Regulatory Authority (FINRA) to challenge fraudulent and reckless broker and brokerage house behavior.

Given the lax enforcement of securities laws, you the investor must police the market yourself.

Remember, you have recourse to reclaim your losses.