Brokers have a duty to properly execute customer orders. If a customer tells a broker to sell, the broker should sell. The broker also has a duty to obtain the best price available for the customer. If the customer places an order to sell a security if the price declines to a certain level the broker is obligated to do so. Whatever the order is, the broker is obligated to follow its terms and to obtain the best price reasonably available (under the circumstances). Failure to meet these obligations results in liability for any resulting losses.

The brokerage firms' compensation for each trade must also be disclosed. If the trade is made between the customer and the brokerage house itself buying or selling for its own account, the markup must be disclosed. If it is too much, rules are violated.

Donald M. Thompson * 55 W. Monroe #3950; Chicago, IL 60603
Ph: 312-782-0844 * Fax: 312-201-1436 * Email: donthompsonlaw@sbcglobal.net