But if the attorney is not well versed in the aspects of securities application the effort may be fruitless. In very limited circumstances, the investor might use a full service broker if he wished to avail himself of a particular analyst's report. While this definition is valid for court proceedings, I still submit that without a knowledge of fundamentals, the effort by such individual is statistically without merit. A substantial bond of research clearly indicates that most investors, not only individuals but financial institutions, do not manage their portfolios effectively, That is, investors do not construct or manage their portfolios in a manner that reflects their attitude toward risk, nor do they recognize the likely financial consequences of disappointing investment performance. Defining investment objectives clearly and realistically, 2. determining an appropriate asset-mix strategy for achieving these objectives and 3. adopting operating tactics that will effectively implement the broad strategic plan.
Few investors do.
I believe the real issue in determining sophistication is to view the inherent knowledge of the broker, supervisor, expert witness AND the attorney or other individual presenting the case. So since you do not have a sophisticated broker, you almost undoubtedly do NOT have a sophisticated client. Pay attention to all of this before entering an arbitration to assure yourself of the basics.