Failure to Execute Trades

Failure to Follow InstructionsThere is little incentive for a stockbroker not to place an order. However, millions of transactions occur each day and mistakes do happen, including failures to place orders. With the rise of technology, it has become more infrequent that orders become lost, but that does happen occasionally.Investment clients can take action for such negligence against the broker or broker-dealer.

At times, a broker may not wish to execute a transaction that the client requests. A customer may want to sell a stock, but broker does not think that is a good idea. If the broker were to dissuade the client from executing a certain transaction, then it would be difficult for the client to later try to recover 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.