Stock Market Losses: When To Sue Your Broker
It is no longer a secret that investing in the stock market is one of the most surefire ways to make a lot of money. But just like most other investments, there also are risks involved being an individual investor. One of those notable risks is when you become a victim of fraud, error, or misconduct by your own stock brokers.
In times when the actions of a stock broker lead to you, the investor, losing money, there’s an unwritten rule that says you should be entitled to receiving financial compensation. But the obvious problem here is that it’s difficult to prove that your broker’s actions led to the losses. But the good news is you don’t have to be on your own in this fight. The smartest way to deal with this is by hiring a stock market lawyer who has the experience and skills to conduct a complete investigation, the purpose of which is to figure out if the misconduct of the stock broker did result to you making losses.
But one thing you need to realize is that you can’t just sue your broker once you feel like he’s done you wrong. But it also doesn’t mean you won’t hire a good securities lawyer unless you’ve decided to sue. Know that not all stock brokers are subject to the concept of fiduciary duty. This means that they might not be obligated at least in the eyes of the law when it comes to putting their client’s best interests before their very own interests. It is therefore best not to work with an unregistered broker as you might find yourself at the wrong end of the relationship.
There’s a good chance you’re in for a court or legal battle in case your broker fails to execute trades. Because stock brokers literally can’t make money based on commission if they don’t place opening orders, it means that they likely won’t fail in this job. But then again, negligence and silly mistakes can lead to orders getting lost and they end up failing to trade. But what you should be wary of are those brokers who will deliberately refuse to place a closing order with the hope that they might be able to make more money later on if 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.
Another reason to consider suing your stock broker is when he makes an unauthorized trade, a move that’s completely the opposite of the first scenario. As such, any trading made without your consent is enough reason for you to be eligible to recover your stock market losses.