Failure to Execute Securities Orders

Investors trust stock brokers to properly execute securities orders. Your broker is allowed “a reasonable time” to execute your securities orders. However, if an investor advises the stock broker to sell a stock or to initiate a stop loss order or something similar, and your broker failed to execute it in a timely manner, and the stock loses significant value during the delay, the broker may be liable for the losses.

Consequences of Failure to Execute Securities Orders

When a broker or investment advisor refuses to place an order, an investor may have a valid complaint. Whether it is a purchase order or short sale, the broker can refuse the order with certain exceptions, especially when dealing in good faith. However, when the broker is ordered to close an order, they should not fail to execute securities orders.