Failure to Execute Trades
There is little incentive for a stockbroker not to place an order. However, millions of transactions occur each day and mistakes are frequently made, including failures to place orders. Additionally, although technology has reduced the possibility, orders do get lost. Investment clients can take action for such negligence against the broker or firm.
At times, a broker does not want to place an order that the client desires. The client may wish to sell a stock, but broker is opposed. The test is whether, at the end of the conversation, the client believes the transaction will take place. If the broker talks the client out of the transaction then it is difficult for the client to seek damages.
It is important to realize that the failure to place the order must result in damages. For example, if the stockbroker does not sell and the price drops, then the stockbroker would not be liable for damages.
Help us evaluate whether you can seek recovery for “failure to execute” by contacting us to request a free consultation.