I bought pre IPO Facebook stock thru a friend of mine in Bay Area in 2008. In 2012 I opened an account at Morgan Stanley to hold my shares.
I told the broker I wanted to hold onto my shares and thought that Facebook had very good prospects for growth. My broker suggested I sell options on my shares "as a way of earning premiums on my shares while holding them". I told him (in an email) I knew nothing about options but he said he would manage my account so I would not lose any shares. He also knew I had never owned any securities in my entire life, was 70 years old and very inexperienced with securities He also said only on a "portion" of my shares.
He talked me into something I should never have been involved in and I ended up losing all of my shares and missing out on the rapid growth that Facebook had in 2013-2015. I lost my shares at $40 and the stock soon went to over a $100! He also sold options on more shares than I authorized and changed the expiration date of the options without telling me. He sold options out 19 months on a growth stock with great potential!
When I complained in an email he called me and said someone from management would be contacting me about the issue. No one from Morgan Stanley ever contacted me, I was ignored.
I then filed for arbitration through FINRA which was the only choice I had. I spent $70,000 on legal fees and the arbitrators ignored that he violated FINRA's own rules about "making inappropriate recommendations, elder abuse, making unauthorized trades and misleading me on the expiration dates which amounted to fraud. FINRA is owned and operated by the big Wall St.
banks and is little more than a Kangaroo court. The arbitrators are beholden to the big banks who employ them! Everyone should read Larry Doyle's book "In Bed with Wall Street" as it explains how the cards are stacked against the investor when it comes to a dispute with your broker. Take my advice and don't trust your broker.
Get everything in writing via emails and save all of your correspondence in a folder in your email.
What happened to me is happening to thousands of investors every year! DON'T TRUST YOUR BROKER!
Product or Service Mentioned: Morgan Stanley Financial Advisor.
Reason of review: Poor customer service.