Prospect Capital Corporation – Securities Investigation
Prospect Capital Corporation: what investors should know about the risks and recovery options. Call (888) 637-5510. URL Slug: prospect-capital-corporation-investigationThe White Law Group is investigating Prospect Capital Corporation on behalf of investors who bought Prospect investments through a broker or financial advisor. Here is what investors should know and how FINRA arbitration can work as a path to recovery.
What Is Prospect Capital Corporation?
Prospect Capital Corporation is a New York-based business development company. It mainly lends to and invests in privately held, middle market companies. It went public in 2004, and an outside adviser, Prospect Capital Management, manages its investments. At June 30, 2026, Prospect reported about $6.4 billion in total assets and investments in 91 portfolio companies.
Broker Due Diligence
Brokers must have a reasonable basis for recommending an investment and must act in the customer’s best interest. That includes understanding the product and considering the customer’s age, goals, risk tolerance, and need for access to the money. Investors who were not told about an investment’s risks or limits on selling it, or who were put too heavily into it, may have a claim.
Prospect Capital Corporation Investigation
The White Law Group is reviewing potential claims for investors who bought Prospect Capital Corporation preferred stock through a broker or financial advisor. Investors should gather their account statements, purchase confirmations, and any written communications about the investment.
Contact The White Law Group
The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. Our attorneys represent investors in FINRA arbitration claims. Call (888) 637-5510 for a free consultation or contact us online.
Frequently Asked Questions
How do I file a claim if I invested in Prospect Capital Corporation preferred stock?
You generally start by filing a claim against the brokerage firm that recommended the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors do not know about, so these claims generally go through FINRA arbitration rather than court. Arbitration can still result in a monetary recovery.
