Stock Market Losses: When To Sue Your Broker
The stock market is a lucrative and viable place to make a ton of money; it’s one of the most secure ways to invest your hard-earned money. Being an individual investor though, there is no denying that there also are certain risks involved in trading. One of the most common risks is when you see yourself as a victim of negligence, fraud, or error 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 the obvious problem here is that it’s difficult to prove that your broker’s actions led to the losses. But there’s a solution for this. What you can do is hire a stock market lawyer, who in turn will be conducting a comprehensive investigation in order to determine if your losses are indeed connected or directly linked to a misconduct by your stock broker.
But then again, you also have to know that you can’t just easily sue your broker. But hiring an experienced security lawyer doesn’t necessarily mean you’re suing right away. Know that not all stock brokers are subject to the concept of fiduciary duty. The meaning of this is that you might be working with a broker who isn’t legally required to put your best interests first before their own. So, if you can, don’t ever work with an unregistered broker because you might be put in this very compromising situation.
There’s a good chance you’re in for a court or legal battle in case your broker fails to execute trades. 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. But then again, negligence and silly mistakes can lead to orders getting lost and they end up failing to trade. 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. 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.