Stock Market Losses: When To Sue Your Broker
It’s no secret that the stock market is one of the most efficient and proven ways to make a lot of money. But as an individual investor, it also can’t be denied that there are risks involved in it. One of those notable risks is when you become a victim of fraud, error, or misconduct by your own stock brokers.
In instances when the unacceptable and improper actions of a stock broker directly causes losses, the rule is investors like you should be given the right financial compensation. However, the fact that you’re an individual investment means that it’ll be very difficult to prove that the stock broker’s actions indeed led to your stock market losses. But the good news is you don’t have to be on your own in this fight. The best course of action is to hire a stock market lawyer; someone who is equipped with the skills and experience to do a thorough investigation, the purpose of which is to prove that your losses are in fact connected to the misconduct of the stock broker.
But you do have to understand that it is not always immediate that you can easily sue your broker. However, it does not also mean that you only will hire a good securities lawyer when you finally decide you’re going to sue. First things first, you must know that not all stock brokers are subject to the idea of fiduciary duty. What this actually means is that there are brokers, with respect to the relationship with investors, who aren’t legally obligated to put the client’s interests before their own. With this in mind, it’s obviously better for you to talk about this before choosing any broker, and also, try to avoid working with an unregistered stock broker as much as possible.
Anyway, if your broker fails to execute trades on your behalf, that’s a sign that you could be in for a legal battle. The fact that stock brokers will earn their commission when they place opening orders for the purchase of stocks or the conduct of short sales, it’s safe to bet that they will perform well in this part of the job. However, there might be instances in which orders get lost due to negligence or silly mistakes and when it happens, they fail to execute trades. But if there is one thing you need to keep an eye on is the tendency of some brokers to intentionally refuse to place closing orders, knowing through experience that they might be able to make more money should they wait it out. Simply put, if you requested a trade but the broker failed in his job in executing it, you can resort to asking a stock market attorney’s advice on how to recover your losses.
One other case in which you might be able to sue your stock broker is if he makes an unauthorized trade, something that’s actually quite the opposite of the first scenario. What this means is that if the broker trades using your account but without your consent, that right there constitutes enough reason to explore your legal remedies.