Failure to Execute Trades
Even though executing trades and other actions regarding an investor’s account are the primary functions of a broker, an alarming number of brokers fail to execute these transactions in a timely fashion. Whether you were hoping to offload an investment before it reduced in value, or you wanted to purchase shares of a new stock before it became a hot commodity, a broker’s failure to promptly execute your desired transactions may result in serious financial harm. In some instances, a missed trade results from a broker’s negligence. In others, it may have resulted from the broker’s disagreement with the investor about the appropriate course of action. Either way, the broker may be held liable for any losses that the investor suffers as a result of the broker’s unreasonable failure to execute the transaction. Dedicated Los Angeles securities law lawyer Steve A. Buchwalter is prepared to assist you with bringing a claim against a broker who burned you.A Failure to Execute Trades May Result in Serious Financial Harm
Failing to execute a trade may affect a wide variety of transactions. It may include failing to obtain the optimum price for a particular transaction, failing to make a transaction within a necessary timeframe, or failing to carry out a specific action that a client has requested. In general, whenever a broker fails to adhere to an investor client’s instructions or wishes, the broker has breached their duty to the client.
When it comes to the investor-broker relationship, an investor justifiably expects the utmost trust, loyalty, and competence from a broker. Many investors rely on their broker’s expertise, especially if they lack the sophisticated financial knowledge that is often required to make complex trades and assessments of the financial market. Brokers work for investors and owe a duty to each of their clients to execute their orders promptly and diligently. Because of the often unequal sophistication between brokers and investors, brokers owe their clients the highest duty of fiduciary care to provide candid, thorough, and timely advice. A broker who violates this duty may be held liable through a claim under federal or state laws. If the investor succeeds in the claim, the broker must pay the investor the difference between their account after the negligent conduct and the estimated value of the account, assuming that the broker had acted with appropriate care.
If the investor can show that the broker intentionally ignored the investor’s request or purposefully delayed in making a transaction, the investor may be able to seek punitive damages. This category of damages is designed to punish particularly egregious conduct while dissuading similarly situated defendants from engaging in the same behavior.Consult a Los Angeles Lawyer for Your Securities Law Claim
Having represented many Southern California investors who have fallen victim to a dishonest broker’s tactics, Los Angeles securities law attorney Steve A. Buchwalter understands how stressful and disruptive this situation may be for you. He has assisted people in Beverly Hills, Irvine, Newport Beach, Santa Barbara, and other cities in Los Angeles, Orange, and Ventura Counties with asserting their rights. Call 818-501-8987 or contact us online to set up a free appointment to explore your options with a broker fraud attorney.