stoneman & schulz - brokerage fraud; what wall street doesn’t want you to know (2002)

[...]... recommendations to you based on the latest sales contest in his office And who cares if you have to work until you are 75 years old because your investments did not turn out as well as the brokerage ads and come-ons told you they would? But we do care, and because you were smart enough to not only buy this book but to read it completely, we know you care too Despite the impending criticism, we know that... advertisements to the deluge of books on investing tips, how to get rich, how to day trade, and the like Yet very few books, if any, address what goes on behind the scenes of a brokerage firm, events that very much impact investors Brokerage Fraud is the first book to unveil what your brokerage firm, stockbroker, and financial advisor fail to tell you about their business, about your investments, and about your... to extort or practice extortion on; as, he screwed me out of money.”2 Sure sounded like Screwed Again was going to be the title, but then our publisher thought it might be mistaken for a sexual manual of some kind.3 We think that after you read the book, the title Brokerage Fraud: What Wall Street Doesn’t Want You to Know fits perfectly Fraud is a broad word that encompasses everything you aren’t told... rules apply to their particular situation but will be able to monitor their trades and portfolios to detect any misdeeds Also, Brokerage Fraud provides investors with yardsticks they can use when selecting brokers and advisors And it will empower investors to evaluate their current stockbroker or brokerage firm to determine if changes need to be made Though the book is not a Preface xix “how to book... 267 Private Placements—Under the Bed Is Not a Good-Enough Hiding Place 271 242 xi Contents Mutual Funds—The Great Equalizers 272 Options—Vegas Never Offered So Much 276 Selling Short—Playing Both Sides of the Same Game 15 279 It’s Your Money, Do What You Want to Do, We Can’t Tell You Who to Sock It To 281 The Initial Interview—Have You Had Yours? 281 Your Investment Objectives—The Underlying Essentials... don’t get the chance to see, playing on our foolishness to enrich themselves and their friends And if we don’t get to come along for the ride, well—they tell us—markets fluctuate How could something with so noble a purpose go so far astray? Douglas Schulz and Tracy Pride Stoneman may know the answer Schulz, a former stockbroker, and Stoneman, an arbitration lawyer, are guides into an investment world... interesting details laid out by Schulz and Stoneman are the compensation systems that brokerage houses put together for their investment advisors Through them, brokers get paid more for selling you a particular product on a particular day, or qualify for free trips and rewards What does that have to do with your financial needs? Nothing In fact, as everyone on Wall Street knows (but will never say in... honor we tried to think of a different title for what the 4 B R O K E R A G E F R A U D securities industry has done to millions of investors We thought of the word hosed, but that’s a youthful term describing what your girlfriend or boyfriend does to you Bilked was out, because that’s what banks do Abuses Now that was a great term, except someone told us that certain kinky people like to be abused With... Street that allows billions of dollars to trade each day—is chipped away a little bit more Honor could return to Wall Street, but only if brokerage firms attack the ethical shortcomings of the current system that is laid bare by Schulz and Stoneman Brokerage firms have demonstrated an inability to handle the conflicts of interest in the system The fact that Wall Street analysts so rarely issue a “sell”... the brokerage world In this chapter, we highlight a few aspects of the industry that you just may not know about BROKERS MAKE MILLIONS—WITHOUT BEING ON A STUPID GAME SHOW Sorry if we misled you It is not you who stands to make the million bucks It is your broker or advisor who works in the securities industry And he can do it right there in his day -to- day job without being on a stupid game show When you . Data Stoneman, Tracy Pride. Brokerage fraud : what Wall Street doesn’t want you to know / Tracy Pride Stoneman and Douglas J. Schulz. p. cm. ISBN 0-7 93 1-4 55 5-4 1. Stockbrokers—United States. 2. Stockbrokers—Corrupt. investors. Brokerage Fraud is the first book to unveil what your brokerage firm, stockbroker, and financial advisor fail to tell you about their busi- ness, about your investments, and about your. Same Game 279 15.  It’s Your Money, Do What You Want to Do, We Can’t Tell You Who to Sock It To  281 The Initial Interview—Have You Had Yours? 281 Your Investment Objectives—The Underlying