Unauthorized trading involves the sale or purchase of stocks without your expressed consent before the trade. A stockbroker must obtain prior authorization for trades he or she makes on your account unless they have discretionary or “de facto” trading authority to do so without your explicit permission, or it’s a margin account.
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Morgan Stanley has decided to to leave an industry agreement known as the protocol for broker recruiting. The move is seen as an indication that the firm is working harder than ever to prevent its brokers from jumping ship.. One reason for that perspective is that Morgan Stanley managers were told on Monday morning that new employment agreements may include a one-year non-solicit agreement.
“Churning” is the act of excessive trading by an unethical broker. Brokers do this because they make a small fee or commission on every trade, which means an unethical broker has an incentive to make a number of small, meaningless trades that pad their accounts but do nothing for you.
Unauthorized trading occurs when your broker buys or sells securities without your express permission. As such, if your broker has made a purchase or sale of securities that you did not okay, you may have an unauthorized trading claim. The best way to determine if you have cause to take legal action is through a one-on-one consultation with the stock fraud attorneys at Colling Gilbert Wright & Carter.