Unauthorized Trading

Securities brokers must obtain authorization from clients before trading the clients' securities. Trades may also be executed if a client has given the broker discretionary trading authority, or permission to make trading decisions for the portfolio. Authorization must be given in advance by the customer, unless discretionary trading authority has been given in writing. The exception to this is in the case of margin accounts, when a broker may sell securities without the client's knowledge.

Fast Facts

Issue name: Unauthorized trading
Applicable law/agency: Securities and Exchange Commission (SEC), National Association of Securities Dealers (NASD)
Related topics: Securities, stock market losses, breach of fiduciary duty, churning, improper use of margin

Securities Transactions Must Have Client Approval

According to the Securities Exchange Commission (SEC) brokers who seek your investment dollars must tell the truth about their businesses and must treat customers fairly and honestly, putting... read more

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Jury Verdicts Related to Unauthorized Trading

______ VERDICT Breach of Contract - Violation of Maine Securities Act - Unauthorized trading of stock.

______ VERDICT - CONVERSION - BREACH OF FIDUCIARY DUTY - STOCK BROKER IN CHARGE OF PLAINTIFF'S TWO ACCOUNTS ENGAGES IN UNAUTHORIZED TRADING OF SHARES OF STOCK OWNED BY PLAINTIFF - ECONOMIC DAMAGES AND DAMAGES FOR EMOTIONAL DISTRESS CLAIMED.

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Videos Related to Unauthorized Trading

Unauthorized Trading

Unauthorized Trading Lawsuits

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MSN Newsfeeds Related to Unauthorized Trading

Rogue activity indictment of banking system's controls

French Societe Generale scandal investigator unsure about rogue trader ...

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News Articles Related to Unauthorized Trading

Update: Eleven indicted in massive ID theft scheme

11 Charged in Global Theft, Sale Of 40 Million Card Numbers - washingtonpost.com

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Useful Web Sites Related to Unauthorized Trading

Burg Simpson, Securities Attorneys

Anapol Schwartz, Securities Fraud Attorneys

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Wikipedia Entries Related to Unauthorized Trading

U.S. Securities and Exchange Commission

Financial Industry Regulatory Authority

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Books Related to Unauthorized Trading

SOROS: The Unauthorized Biography, the Life, Times and Trading Secrets of the World's Greatest Investor

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