Using securities in an investment account to secure margin credit exposes investors to leverage that increases the risk on an account. Margin misuse can lead to excessive use of Margin credit or the inability to use risk management strategies to protect bank collateral. Morgan Stanley and its financial advisors are therefore required to disclose to investors the risks associated with the use of margin. In addition, failure to use risk management strategies suspends an investor`s cancelled account due to fluctuations in volatile margin call markets. These margin calls can lead to the forced sale of securities. New York–(BUSINESS WIRE) -KlaymanToskes (“KT”), www.klaymantoskes.com, today announced that it is investigating damages suffered by investors with morgan Stanley (NYSE:MS) forced to sell securities due to Margin Calls. The investigation focuses on Morgan Stanley`s possible negligence and mismanagement at Leveraged Accounts. More recently, investors have quickly seen that major stock indices have depreciated significantly after closing Friday, February 21, 2020 at nearly 52-week highs. Market volatility was triggered by COVID-19. Many investment portfolios, such as stock market indices, have also experienced huge declines, making leveraged accounts particularly exposed to the risk of Margin Calls. Objective: klaymantoskes.com/notice-to-morgan-stanley-customers-with-margin-accounts/ The sole purpose of this press release is to examine whether the strategies put in place by Morgan Stanley are appropriate for investors whose investment accounts have been cancelled by a Margin loan and have received calls that have forced the sale of securities.
Investors who had leverage accounts with Morgan Stanley and have information about how the firm managed their portfolios are asked to contact KlaymanToskes` lawyers at (561) 542-5131 or visit our firm`s website under www.klaymantoskes.com. . KT is a leading national securities firm that works exclusively in the field of arbitrage and securities management on behalf of private and institutional investors worldwide in large and complex securities matters….