Reasonable-Basis Suitability

Securities Litigation Attorneys Representing Clients Nationwide

As an investor, it is critical to understand solicited vs. unsolicited trades since they have far-reaching effects for suitability claims. Often, solicited trades are initiated by a stockbroker while unsolicited trades are initiated by the customer. In case you didn’t initiate a trade but the stockbroker marked it as unsolicited, this a sign of a fraudulent activity that could result in a significant financial loss. At Weltz Law, our securities litigation attorneys are highly trained and experienced in investment trade and are devoted to promoting top-rated investor education. We are a team of fierce, tested, and proven advocates committed to helping clients wronged by fraudulent stockbrokers recover their losses. Call us now!

Solicited Vs. Unsolicited Trades

The main difference between solicited and unsolicited trades is that the former is the broker’s idea while the latter is the client’s idea. if a broker mismarks a trade as unsolicited when it is actually solicited, this amounts to a violation of FINRA Rule 2010 which requires all stockbrokers to conduct themselves with high standards of commercial honor and professional integrity. The reason why most brokers mark solicited trades as unsolicited is because they want to protect themselves from future liabilities.

Why Should Investors Understand The Difference Between Solicited And Unsolicited Trades?

Look at this scenario – you want to purchase $10,000 worth of stocks from a particular company. Unfortunately, the stock loses over 80% of its value and you end up making a significant loss. Since you strongly believe you shouldn’t have made this investment in the first place, you decide to hold your financial advisor legally liable for the loss. You file a FINRA arbitration suit and seek for full compensation of your investment.

In this case, knowing the difference between solicited and unsolicited trades means a lot. If a broker pushed you to make this investment that was not in your best interest, you doubtlessly have a strong case. However, if the broker marked this as an unsolicited trade, it means it was your idea and it can be challenging to hold them liable for your losses.

The decision made by the FINRA arbitration panel will depend on how well you prove the transaction was a solicited trade. For optimal results, ensure you work with professional securities litigation attorneys from Weltz Law.

Brokers Have An Obligation To Properly Mark Transactions – But Some Don’t!

According to FINRA Rule 2010, all registered brokers have a professional obligation to mark and report all transactions properly. Whenever a client places an order, a broker needs to write a ticket and indicate whether the trade was solicited or unsolicited. Every order must be marked properly in case a dispute occurs. When reviewing previous orders, you must find the words ‘solicited’ or unsolicited properly indicated in every document. If you don’t, you need to take action as soon as possible or else you risk losing significant investment.

A brokerage has a moral obligation to correct unmarked tickets and assure clients that this problem will not occur in the future. If your brokerage firm fails to do this, talk to the securities litigation attorneys at Weltz law and they will advise you on the best course of action.

Suitability Supervision?

Meet with a Seasoned Securities Litigation Attorney to Discuss Your Solicited Vs. Unsolicited Trades Case

For more than 30 years, our committed securities litigation team have helped thousands of clients recover compensation from their losses. If you are a victim of broker negligence or fraud resulting from unmarked tickets, call us at 877-935-8952 or fill out our online form to schedule an appointment.