The Securities and Exchange Commission has approved
amendments relating to stop orders in customer accounts, with an effective date of January 21,
2013. This Regulatory Notice addresses new FINRA Rule
5350 (Stop Orders), which replaces the stop order provisions of FINRA Rule 6140(h).
Many investors have been lulled into a sense of false
security when their brokers have advised their clients that they have been pursuing a general (or vague)
strategy of assuring the sale or purchase of securities at, above, or below a specified price.
So what is a stop order? It is an order
to buy or sell a security that becomes a market order to buy or sell when a transaction occurs at or
above (below) the stop price.
A stop limit order is an order to buy or sell
that becomes a limit order to buy or sell at the limit price when a transaction occurs at or above
(below) the stop price.
We offer a free initial consultation to investors who feel
they have been victimized as a result of failure to implement stop order or stop limit order
instructions in their accounts.
The Law Offices of Timothy J. O’Connor is one of the
only law firms practicing securities law in the Tri-City Capital District of
York State, including Buffalo, Binghamton, Syracuse, Watertown, Utica, Kingston, New York
City/Manhattan, Long Island, and everywhere in between, as well as in the surrounding states of
Massachusetts, Vermont, New Hampshire, Connecticut, and New Jersey.
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