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Stockbroker & Investment Fraud Attorneys

Unauthorized Investments

Improper Stockbroker Trading


When you tell your broker to purchase or sell a certain number of shares of a stock, and you tell him to exercise what is called "time and price discretion," he may, within reasonable bounds, decide exactly when to execute your transaction, even in a nondiscretionary account. However, the broker may not decide what to buy or sell or how much without your prior instructions. It is not good enough for him to notify you in a general manner that he is seeking to make certain investments on your behalf. Absent a specific authorization from you, your stockbroker is not entitled to make investments without your approval. Even if you have a discretionary account, your broker is supposed to follow your instructions with respect to the exercise of that discretion. If you have told him, for example, that you do not want to buy anything risky or on margin, the broker has an obligation to respect your instructions.


If you believe that you have lost money as a result of stockbroker misconduct, don't delay - important legal rights are at stake! Contact an experienced stockbroker fraud attorney today.


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