Legal Question in Business Law in California

On line stock brokerage firm, responsibility for the best interests of the clien

I have received an order cancelled confirmation on the completed orders page only to find out the next day, that I owned the stock. I was told that the moving of the order from the "order pending" page to the "completed orders" page, showed an attempt was made, even though, "executed" appeared. I have received a hard copy confirmations that is a sixty fourth higher than the price shown on the completed buy orders executed page. The reason given, that there is no fraction to designate the amount exactly. I have been told that my limit order was given to the trading floor 20 to 40 minutes behind the market, when I called the next day to complain. Should not the brokerage firm inform the client at the time the order is placed, that they are running 20 to 40 minutes behind the market? Their quotes are advertised as real-time.

7/28/99


Asked on 7/28/99, 12:17 pm

1 Answer from Attorneys
John Hayes The John Hayes Law Offices

Re: On line stock

Since online trading is brand new there really aren't

any laws governing it. In order for their to be law

cases have to go to court and the supreme court will

then make a decision on the law. From the information

that you gave it sounds like false advertising since

they advertised real time and in reality it was a 20-40

minute delay. This sounds interesting and I would like

to talk to you in more detail about your case. I

have been seeing a lot of cases like yours in the media.

Stories where people have placed online bids and the

brokerage either bid later when the prices went back

up or they didn't sell until the prices fell. The law

is very gray at this point, but I have a feeling

that people are going to start suing these guys for

screwing up and costing them literally millions of

dollars. Please call me at 888-5NETLAW (888-563-8529)

the call and the consultation is free. I look forward

to talking to you.

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Answered on 7/30/99, 11:22 pm


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