Articles Written By Douglas J. Schulz

Securities Expert Witness, Douglas Schulz

Is committed to providing expert analysis, consultation and litigation support services for individual investors and the attorneys who represent them in the complex and rapidly ever-changing arbitration process. The following articles and publications were written by Douglas J. Schulz. These articles have been copyrighted. You have permission to download, print, and utilize these articles as long as you credit the source.

The following articles and publications were written by Douglas J. Schulz. These articles have been copyrighted. You have permission to download, print, and utilize these articles as long as you credit the source.

Online/Internet Trading, Gambling, BD’s No Duties, Third-Party Accounts, April 2023

This article addresses three problems and concerns for investors and regulators that relate to online broker-dealers such as charles Schwab, TD Ameritrade, Interactive Brokers, E*Trade, and Robinhood. The three issues are: a) is online/internet trading nothing more than legalized, casino gambling?, b) do online broker-dealers really have no duties for self-directed platforms/online accounts? and c) are broker-dealers properly opening, managing, and monitoring third-party accounts? There are two versions of this article; the shorter version published in PIABA Bar Journal, Vol. 30, No. 1, 2023 and the original, longer version on my website.

Unauthorized Discretionary Trading 2020

PIABA Bar Journal, Vol 27, No 1 (2020). This article updates my two previous articles on unauthorized trading in 1994 and 2001. I address the updated regulations, along with the current litigation issues on unauthorized trading. Special emphasis is given to broker-dealers’ boilerplate defenses to unauthorized trading claims

Cryptocurrencies–Investment or Electronic Currency of the Future?

Computer & Internet Lawyer, Vol. 35, No. 11, November 2018. This article discusses the history of currencies and the use of cryptocurrencies today in the framework of today’s securities regulations.

Cryptocurrencies–Investment or Electronic Currency of the Future?

PIABA Bar Journal Volume 25, No. 1, 2018. This article will attempt to clear up much of the misunderstandings that have governments, regulators, banks, and consumers confused.

Supervision of Third-Party/Power of Attorney Accounts

2016 PIABA Bar Journal, Vol. 23. No.2, This article details the serious problems that can arise in brokerage accounts when a power of attorney is given to a third party, especially at Internet/online brokerage firms.

Bonds and Bond Funds - the Next WallStreet Bombshell

2013 This paper highlights the ensuing debacle which will hit the fixed income and bond markets. Both statistically and in layman’s terms, the article lays out the specific risks to investors who own bonds, bond mutual funds and other fixed income investments.

Swimming Naked When the Tide Goes Out: Naked/Short Options

2013 PIABA Bar Journal, Volume 20, No. 1 2013. This article is a primer on naked or short options, the conflict of interest, firm commission schedules, online option trading, securities regulations, portfolio margin and margin call liquidations.

Due Diligence: Securities Applications and Regulatory Requirements

2011 PIABA Bar Journal, Volume 17 No. 4 2010. This article addresses the due diligence obligations of financial professionals, such as brokers, broker-dealers, investment advisors, hedge fund managers and private placements.

Flat Fees or Fat Fees

PIABA Bar Journal, Fall 2003. This article discusses flat fee and wrap fee accounts of brokerage firms and why in many instances they are not in the best interest of investors.

Concentration: Too Much of a Good Thing

(PIABA Bar Journal, Summer 2002 Vol: 9, No 2.) The article discusses the various aspects of concentrating portfolios in stocks or sectors of the market and the inappropriateness and damages concentration and lack of diversification can cause.

Unauthorized Trading, Time and Price Discretion & the Mismarking of Order Tickets

Practicing Law Institute (PLI) Securities Arbitration 2001, August, 2001. The article addresses the regulations surrounding these three areas, and how regulators, compliance individuals, lawyers, and arbitration panels can determine if these violations have taken place. The article also suggest changes which are needed in the regulation of these infractions.

No Duty – Does Suitability Apply to Internet Brokerage Firms?

Published and presented at Public Investor’s Arbitration Bar Association, PIABA October, 2000. The article address the position of internet firms that say they have no duties as it relates to “suitability” and the “Know Your Customer Rule”. E*Trade is discussed specifically.

Perils of the Net Trader

Published in The Colorado Springs Business Journal, October 1999. This article specifically addresses an investor whose order execution with an internet trading firm was duplicated due to the firm’s admitted false representation and how the firm dealt with the customer’s complaint.

Internet Market Orders Can Be Dangerous

Published in The Colorado Springs Business Journal, August 20, 1999. This article addresses the use of market orders, limit orders, stop orders, and stop limit orders as they relate to internet trading.

Internet Trading - Take a Walk on the Wild Side

Published in Securities Arbitration 1999, Practicing Law Institute, July 1999. This article addresses the booming market in Internet trading; the pitfalls, and conflicts in trading through Internet brokerage firms, as well as the liability.

An Additional Revenue Stream: The Second Opinion Business

Published in the Financial Advisory Services Alert, July 1999. CPA/Registered Investment Advisers (CPA/RIAs) who are currently providing fee-based investment advisory services, and practitioners who are contemplating offering such services, will find that the second opinion business complements their existing practice and provides an additional source of revenues

The New NASD Arbitrator Selection System - NLSS

Published in the Securities Arbitration Commentator, April 1999 #10-6. The NLSS was a major change in the NASD arbitrator selection system. The article explains some of the finer points of NLSS and discusses the strategies, benefits and downsides of the new system.

Risk Tolerance of Investors

Published in Guide to Investment Advisory Services, Practitioners Publishing Company, 1999. Evaluating the risk tolerance of an investor is an essential part of an investment advisor’s practice. The article provides a framework to allow advisors to conquer such a historically complex task, and thereby make proper recommendations to their clients.

Investors Level of Knowledge

Published in Guide to Investment Advisory Services, Practitioners Publishing Company, 1999. The article and survey are tools designed to assist investment advisors to evaluate the investment knowledge of their clients.

When Is An Order An Order? Unauthorized Trading by Securities Brokers

Published in Securities Arbitration 1994, Practicing Law Institute, July 1994. The article covers the discussions that must take place between a broker and the client, the order process, discretionary trading, and the arbitration of unauthorized trading claims.

Damages in Limited Partnership Cases

Published and presented at the PIABA Second Annual Meeting/Conference, October 1993. The article discusses the proper methods to calculate damages and lost opportunities, as well as the accompanying support documents.

Arbitration of Limited Partnership Cases

Published in the Securities Arbitration Commentator, February 1992. The article addresses the marketing of limited partnerships in the 1980’s and the arbitration of securities claims.

The Use of Expert Witnesses in Securities Arbitration

Published in Securities Arbitration- Evaluation, Preparation, Presentation, March 1991. Mr. Schulz has also spoken on this subject at a number of national and regional securities seminars.

Forced Arbitration - Perfect Justice? Discovery in Arbitration

Published in the Securities Arbitration Commentator, November 1990. The article explores the problems attendant to discovery in arbitration and offers suggestions for change and for working within the system.

Mr. Schulz was a co-columnist on articles on the investment and brokerage industry for the Colorado Springs Business Journal.