Stockbroker and Financial Advisor Failure to Execute Attorney

What is Failure to Execute?

Failure to execute claims against stockbrokers and financial advisors are often problematic.  By definition, damages are “should have, could have, would have” damages but for the particular security not being purchased or sold.

There are many species of the failure to execute claim.  The best, and perhaps the most frivolous example of failure to execute claim is customer that told their stockbroker to sell if the stock went down, or the customer believes that they placed an imaginary or confirmation-less, stop-loss order, or limit order with their broker.

Often investors will complain that their broker “refused” to sell the securities in their account, but often on further investigation, one will find that the broker simply recommended that the customer not sell a particular securities, which is most often a matter of judgment.  However, sometimes with the benefit of hindsight, even bad judgment, but is not actionable, certainly not as a failure to execute.

Customers will complain that  the broker refused to place an order to purchase securities, or refused to purchase additional securities in a margin account. However, this also is often not actionable as the broker has a right to refuse purchase transactions or refuse to continue to extend credit for just about any reason, on margin.

With the “democratization” of the securities markets, customers will often complain about bad executions or why market orders traded ahead of their limit orders during periods of volatility.

What most customers do not understand is that in order of preference, particularly on an exchange, market orders are executed before limit orders, and if the price was not there long enough to accommodate the limit order, it may remain unexecuted.

However, sometimes, customer’s place orders, including limit orders which are never entered or executed because the broker is negligent.

Customers with such complaints need to act quickly, and not complain after receiving months of statements showing that they owned or did not own a particular security, later complain about a failure to execute. Even in cases were there is a bonafide failure to execute the customer’s losses will be limited to the difference in price of the underlying security when they knew, or more importantly, should have known the transaction was not effected.

Call Our Failure to Execute Lawyer for Victims of Fraud and Negligence by Brokers and Financial Advisors

If you think that you may have a claim for failure to execute, contact us for a free confidential evaluation.  The Guiliano Law Group was extensive experience representing investors in failure to execute claims in arbitration before the Financial Industry Regulatory Authority or FINRA. If you believe that you may have a claim call our attorneys today at 1-877-732-2889.   All inquires are confidential, and we offer our services on purely a contingent fee basis, meaning we do not get paid unless we make a recovery for you.