NOTICE TO GENERAL ELECTRIC COMPANY INVESTORS: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Commences Investi...
February 02 2018 - 1:35PM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes,
P.A. (“K&T”), www.nasd-law.com, announced today that it is
investigating the damages sustained by investors who held large,
unhedged concentrated positions in General Electric Company stock
(NYSE:GE) (“GE”). Since trading at $31.60 per share in December
2016, the price of GE stock has dropped about 50.6% and is
currently trading around $15.61 per share. As a result of this
decline, GE shareholders who held large concentrated stock
positions in GE have sustained substantial losses.
Investment portfolios holding large concentrated stock positions
carry significant downside risks. In some cases, investors holding
these positions are unable or unwilling to sell due to adverse tax
consequences, company or regulatory restrictions or corporate
culture. Full service brokerage firms whose customers hold large
concentrated stock positions have a duty to ensure that their
customers understand the risks associated with concentration, and
to disclose and recommend the availability of risk management
strategies which can be used to protect the value of the
concentrated portfolio. Such risk management strategies include
stop loss and limit orders, protective puts and collars. Stop loss
orders, limit orders and protective puts provide an account with
downside protection and an exit strategy should the stock decline
in value. A hedge strategy, known as a “zero cost” collar, creates
a range of value that the portfolio maintains irrespective of the
fluctuation and direction of the underlying stock price. The
failure to use risk management strategies as well as the failure to
“hedge” the value of a concentrated portfolio directly exposes an
investor’s concentrated position to the fluctuations in the
volatile securities markets.
The sole purpose of this release is to investigate whether
strategies deployed by investment firms were suitable for GE
investors with concentrated stock positions. GE investors who held
accounts at full-service brokerage firms, and have information
relating to the manner in with the firm handled their concentrated,
leveraged portfolios, are encouraged to contact the attorneys of
Klayman & Toskes, P.A., at (888) 997-9956, or visit our firm’s
website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which
practices exclusively in the field of securities arbitration and
litigation, on behalf of retail and institutional investors
throughout the world in large and complex securities matters. The
firm represents high net-worth, ultra-high-net-worth, and
institutional investors, such as non-profit organizations, unions,
public and multi-employer pension funds. K&T has office
locations in California, Florida, New York and Puerto Rico.
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version on businesswire.com: http://www.businesswire.com/news/home/20180202005558/en/
Klayman & Toskes, PALawrence L. Klayman, Esq.,
888-997-9956lklayman@nasd-law.comwww.nasd-law.com
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