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Edward Stike Allegedly Invested Client in Overly Risky Investments

Feb 3, 2023 Unsuitable Investments

Edward Stike (CRD #: 1439479), a broker registered with LPL Financial, allegedly invested a client in unsuitable investments, according to his BrokerCheck record, accessed on January 26, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Investor Dispute

On November 16, 2022, an investor alleged that Edward Stike invested them in excessively risky and “over-weighted” equities and high-yield bonds that exceeded the bounds of their risk tolerance. The client seeks $750,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles describe investor characteristics, including the following:

  • Age
  • Financial goals
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by pursuing FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of many other rules may also qualify as violations of FINRA Rule 2010.

Background Information

Edward Stike has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

Edward Stike is a registered broker in 31 states and Washington D.C. He is a registered investment adviser in Texas and West Virginia.

He has also worked for the following firms:

  • RBC Capital Markets (CRD#:31194)
  • Ferris, Baker Watts (CRD#:285)
  • Wheat, First Securities (CRD#:6124)
  • Shearson Lehman Hutton (CRD#:7506)
  • E. F. Hutton & Company (CRD#:235)
  • First Investors Corporation (CRD#:305)

Kurta Law Can Help

If you worked with Edward Stike and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.