Over-concentration in One Type of Investment is Mismanagement
If you requested safe and secure investments but your financial advisor or broker invested a large percentage of your account into one security, one sector of the economy, or one type of investment, it is over-concentration. Failing to diversify your investments over asset class (type of security, i.e., stocks, bonds, mutual funds, cash, etc.) and sector (health care, financials, automotive, pharmaceuticals, oil and gas, consumer goods, technology, international, etc.), as well as “over-concentration” in any one of those areas may be the reason for your losses and an actionable claim against your broker. A broker or advisor who does not diversify his client’s portfolio is potentially liable if that investment declines in value.