The Law Office of Robert Wayne Pearce, P. A. is investigating and representing clients in another group of structured products that were mass marketed and mass misrepresented to fixed income investors which were reverse convertibles known as ELKS, PLUS, yield optimization notes, etc. According to Attorney Pearce they were routinely sold to individual investors as a way of earning more income without taking on greater risk. They were pitched as safe investments and many investors were told that their principal would absolutely be protected. The only risk, according to many investors, was that the rate of return could fluctuate. In truth, reverse convertibles were complex investments involving options that put investors’ principal at a significant risk of loss. The high-yield, short-term notes (IOUs) that investors thought they were buying were linked to the performance of a stock or basket of stocks that investors actually received at maturity instead of a return of their cash investment. If you are not suitable for option investing you are not suitable for reverse convertibles.
Representing clients throughout Florida and nationwide.
They are also known as “revertible notes” or “reverse exchangeable securities” and sold under a variety of proprietary names that may or may not use the term “structured” to describe the product. Reverse convertibles are debt obligations of the issuer that are tied to the performance of an unrelated security or basket of securities. Although often described as debt instruments, they are far more complex than a traditional bond and involve elements of options trading. Reverse convertibles expose investors not only to risks traditionally associated with bonds and other fixed income products-such as the risk of issuer default and inflation risk-but also to the additional risks of the unrelated assets, which are often stocks.
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The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and Reverse Convertible investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.
For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.