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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
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Videos Related to Unauthorized Trading
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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
SocGen to replace CEO after $US7.8bn trading loss | theage.com.au
Societe Generale splits chairman, CEO roles - USATODAY.com
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Useful Web Sites Related to Unauthorized Trading
Anapol Schwartz, Securities Fraud Attorneys
Burg Simpson, Securities Attorneys
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Wikipedia Entries Related to Unauthorized Trading
U.S. Securities and Exchange Commission
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Books Related to Unauthorized Trading
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