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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Misrepresentation

Definition:

Think of it as catfishing in the finance world. Misrepresentation happens when a broker, investment firm, or agent doesn't give you the facts or misleads you about the status of your account. When you don't have good information, it can affect the investment decisions you make, which is why the finance industry takes a dim view of misrepresentation. 

Example

If someone tells you "your investment account is doing fine; don't worry" when it's dropped by 90% in value over the past few months, that's misrepresentation.