When your broker recommends that you buy or sell a particular security, your broker must have a reasonable basis for believing that the recommendation is suitable for you.  In making this assessment, your broker must consider your risk tolerance, other security holdings, financial situation (income and net worth), financial needs, and investment objectives.  The Financial Industry Regulatory Authority (FINRA) has specific rules requiring such assessment prior to making the investment.  A broker making unsuitable investment recommendations may be liable to the investor for losses incurred as a result of such recommendations.

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