ProShare Draws Suit Over a Leveraged ETF . A lawsuit seeking class-action status claims that ProShare Advisors and others violated a securities act by failing to disclose risks inherent in its ProShares UltraShort Real Estate fund, an inverse leveraged exchange-traded fund, including the risk of a "spectacular tracking error." http://online.wsj.com/article/SB124961014025313309.html
lots of securities laws regarding disclosure to risk has been removed. if you are financial advisor there is rule saying you can't recommend investments to clients that aren't suitable for them but when you open an account..you waive that rule for retail accounts...retail accounts need to do their own diligence or education..discount brokers don't give advice or liable for anything they just take trades. this way brokers aren't liable for fraudulent stocks, investments espcially in penny stocks and don't have to refund client money if client is defrauded or client made some bad trades and blows out his account for whatever reason. most retail accounts don't have a clue how to trade or know how to read a balance sheet of stocks.
Today I wanted to day trade SSO, but a pop up box came up instead. Fidelity made me read and check off the "agree" box to understand the risks associated with owning/trading these leveraged ETFs. After I checked the box, I was then allowed to trade SSO.