An investment should be suitable for an investor. Brokers and sellers are held to a high responsibility in this regard, which means they are required to know the essential facts as to both. In addition to the company or offeror of the security, the fund, the bond, the stock, or the underlying agreement, she or he should also know whether the buyer is employed, retired, his purpose for buying, his general financial condition, the tax implications of the transaction, health issues, family issues, inheritances, and so on, and must have a reasonable basis for making a recommendation. If she doesn’t, she may be liable for any losses sustained. If her boss or brokerage company doesn’t properly supervise her, they may also be liable.
