What is Diversification?

“Don’t put all your eggs in one basket” is a common adage and describes the concept of diversification, and nowhere is it more applicable than in the world of investing.  FINRA Rule 2111 requires brokers to recommend portfolios that are are designed to suit the investor’s unique investment objectives and risk tolerance.  In addition to the requirement that broker’s only recommend portfolios designed to meet the unique objectives and risk tolerance of the individual investor, broker’s a required to recommend portfolios that provide adequate diversification.

If you have suffered investment losses, then Galvin Legal may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.  For a Free Consultation with a securities attorney, call Galvin Legal at 1-800-405-5117.