Unauthorized Trading

When a professional relationship with a stock broker is established, the client may give the stock broker written permission to use discretion when trading. However, if the client does not wish to do this, the stockbroker must get permission from their client before making a trade. Doing so behind their client's back is known as unauthorized trading. An attorney can help to determine whether or not your situation may be grounds for a lawsuit.

Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!

Unauthorized trading can result in:

  • Claims For Rescission
  • Breach of Contract
  • Loss of Money
  • Fraud

Often, a stock broker may place a transaction into a client's account without permission. When the client notices and complains about it, they might be convinced to let the transaction remain untouched because it will end up being profitable. This is a clear sign that the stock broker is dishonest and may have done other things behind the client's back. If you feel your stock broker has been dishonest, contact an attorney today.

In securities arbitrations, unauthorized trading allegations are common. If a client chooses not to give written permission to their stockbroker to buy and sell securities to their discretion, they must get oral permission from their client for each separate transaction. Unfortunately, many stockbrokers get tempted to just do what they wish without consulting their client because they are certain it will be profitable. However, there is never a guarantee that all trades a stockbroker makes will be profitable, and if money loss occurs, he or she is liable.

Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!

Updated: LW

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Have you or someone you know become a victim of insider trading due to a negligent stock broker? If so, contact one of our securities fraud lawyers in your area today!

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