Legal Question in Securities Law in California

brokerage and legal margin practices

in my brokerage account i placed an order at market for an estimated total of 3,000. which did not exceed current cash avliable, and when the order was placed my avliable margin went to 0. THe company i was investing in announced a merger and balloned in price. my brokerage at the next day purchased 100 contracts for a a total of $54,000 on margin. the price of the securities declined rapidly and they liquidated it the following day. Now I owe the differnce of 30,000.

Do I have any legal options? To conter this?


Asked on 6/05/07, 1:49 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: brokerage and legal margin practices

Perhaps, but your question is written with too little explanation, so one cannot tell whether your complaint is based upon unauthorized trading or improper exceeding of available cash and margin. Also, was it a day order? Did you receive prompt notification of the execution of the buy-side trades?

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Answered on 6/05/07, 2:24 pm
Ron Alikani Irvine Law Group, LLP

Re: brokerage and legal margin practices

Your might have remedy through NASD Arbitration. Do you have record of your initial execution? Was it done online or via telephone? Our firm has successfully handled claim against an online brokerage regarding timing of execution. I need more information as to facts of your case.

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Answered on 6/05/07, 6:51 pm


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