Structured Products Linked to the Performance of Apple Stock
The nationwide investment recovery attorneys at McCabe Rabin, P.A. are currently investigating the sales of structured products tied to the price of Apple stock (NASDAQ: AAPL) by brokerage firms such as J.P. Morgan Chase, Morgan Stanley, UBS, Barclays and others. According to the financial research firm, Securities Litigation and Consulting Group (“SLCG”), the drop in price of Apple stock from $702.10 on September 19, 2012 to only $450.50 on January 24, 2012 has caused losses of more than $100 million in the approximately 650 structured products tied to Apple stock.
According to SLCG, most equity-linked structured products tied to Apple are reverse convertible notes. Reverse convertibles are short-term notes whose maturity payment is dependent on the closing price of an underlying stock or group of stocks.
According to the Wall Street Journal, in 2012 alone, when the price of Apple stock was soaring, brokerage firms sold more than $722 million of reverse convertibles tied to Apple. According to SLCG, over 100 of the Apple-linked notes sold in 2012 have incurred losses of more than 25%.
Some brokers who sold these products may not have sufficiently understood the nature and risks of these complex structured products. Consequently, some brokers may have misrepresented the risks and potential for loss of principal to investors.
McCabe Rabin is currently investigating whether adequate disclosures were made to investors about the nature and risk of these products.
Investors nationwide who have suffered losses as a result of an investment in notes tied to Apple stock purchased through J.P. Morgan Chase, Morgan Stanley, UBS, Barclays, or any other full service brokerage firm, and who may have a FINRA arbitration claim, may contact the Florida attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to firstname.lastname@example.org.