Attorney for Victims of Stockbroker and Financial Advisor Failure to Execute

What is Failure to Execute?

The failure to execute means that a customer gave their stockbroker or investment professional a specific order to sell a specific security, sometimes at a specific price.  Allegations that a stockbroker or investment professional failed to execute a sell order “if the stock goes down,” or “if the time is right,” do not make for valid failure to execute claims.  “Could have sold,” or “should have sold,” or “the stockbroker talked me out of it” do not work either.

Limit orders, where a security is to be bought or sold within certain limits, and/or stop loss orders, where an order becomes a market order once the specified price is reached, must be confirmed or held on an exchange or willing market maker under the Rules.  However, particularly in times of volatility, market orders are going to be executed in advance of limit orders.

Fail to Execute Customer Orders

There are nonetheless times where stockbrokers fail to execute customer orders.  In one case, a stockbroker accepted a sell order, even though the securities were not delivered (nor were they anticipated to be delivered by settlement date) so his firm would not allow the order to be placed. Once the security arrived, the stockbroker simply forgot to place the order.

Failure to Sell or Buy

Other failure to execute claims may involve the assignment of options coupled with the failure to sell or buy the underlying security upon assignment.  The underlying securities may open dramatically up or down following the assignment, and the failure to close the investor’s position can have a catastrophic effect.

Damages In a Failure to Execute Claim

Damages in failure to execute claims, (or in even supposed “unauthorized execution” claims in connection with typically margin liquidations) are limited to the difference in price of when the order was to be executed, and the price the investor learned (upon the exercise of reasonable diligence or immediately in a self-directed account) that the subject transaction was or was not executed.

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

The Guiliano Law Group has extensive experience representing investors in actual failure to execute claims, and in cases where investors have suffered losses as a result of brokerage firm trading errors, buy-ins, sell-outs, and other forms of errors and the failure to execute.   If you have suffered damages as the result of the failure to execute, contact us for a free, no obligation evaluation of your claim.