When To Sue Your Brokers for Stock Market Losses
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 risks is getting victimized or defrauded by your own stock brokers.
In the world of stock market trading, it is a fully-accepted fact that when the improper or deliberate actions of a broker leads to stock market losses for the investor, which in this case is you, it means you are entitled to getting financial compensation. But then again, you’d be faced with a rather uphill climb in proving that your stock broker’s actions in fact led to your 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 you do have to understand that it is not always immediate that you can easily sue your broker. But it also doesn’t mean you won’t hire a good securities lawyer unless you’ve decided 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. It is therefore best not to work with an unregistered broker as you might find yourself at the wrong end of the relationship.
Furthermore, in the event that your current broker fails to execute trades for you, it’s one of those signs that you might have to resort to going to a legal battle. Considering the fact that stock brokers earn by way of commission through placing opening orders to purchase stocks or conduct short sales, it’s easy to assume that they’d be careful enough not to fail in this part of the job. Unfortunately, there could be instances when silly mistakes and negligence lead to orders getting lost and brokers fail to execute trades. What you have to be taking a closer look at is those brokers who intentionally refuse to place closing orders, knowing that there’s a chance they can make more money by waiting 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 scenario in which the option of suing your stock broker opens up is when he does an unauthorized trading, something that’s literally the opposite of the first one. In other words, if the broker makes trades using your account without your consent, then it is enough ground to ask for compensation for your losses in the stock market.