Questions and answers

What is an unsolicited order?

What is an unsolicited order?

Definition. What does Unsolicited Order mean? It is an order placed after a customer tells the agent what he/she wants to buy or sell, as opposed to an order placed on the recommendation of the agent.

What is a solicited vs unsolicited trade?

Solicited trades differ from unsolicited trades based on who originally suggested the trade. A solicited trade is one “solicited” by the broker; in other words, the broker sees the potential trade and recommends it to the investor. In contrast, unsolicited trades are those initially suggested by the investor.

What is an unsolicited discretionary trade?

Non-discretion. A discretionary trade is a trade initiated by the representative without the specific prior approval of the client. It is SFA’s policy that we do not allow any form of discretionary trading in non-advisory accounts.

What does solicit mean in finance?

Solicitation is a request for something, usually money. Solicitation comes from solicit, which means “to request,” or “to entreat.” So solicitation is the act of requesting. There are three kinds of solicitation. One is asking for money, like when someone goes door-to-door trying to collect money for a cause.

How do you sell unsolicited stocks?

Investors may report unsolicited Stock Tip/Recommendation on +91 8291833676 or on designated email id i.e. [email protected]

What does unsolicited mean on Robinhood?

An unsolicited trade is one in which an investor (the client) initiates the transaction by bringing it up as an idea to their registered securities representative. In these cases, the transaction was fundamentally the investor’s idea.

What are unsolicited shares?

An unsolicited bid is an offer made by an individual, investors, or a company to purchase a company that is not actively seeking a buyer. Unsolicited bids may sometimes be referred to as hostile bids if the target company doesn’t want to be acquired.

What does it mean to solicit a trade?

What is a Solicited Trade? A solicited trade is one in which a registered investment advisor recommended the transaction to their client. In other words, the trade was originally considered, and eventually executed, because the broker thought it was appropriate for their client.

What is an unsolicited message?

An unsolicited message is an output message not associated with an input message. An unsolicited message results from a host application sending an unsolicited message.

How do you sell unsolicited shares?

Can Robinhood sell your stock without your permission?

Your broker cannot sell your securities without getting permission from you. A financial advisor needs the proper authorization to execute any transaction on your brokerage account. Whether it is buying a stock, selling securities, or moving money around, unauthorized trading is a very serious legal violation.

How can you tell if a trade is solicited or unsolicited?

When you place an order (or an order is placed on your account) your broker must write a ‘ticket’ for the trade. Among other information, on the specific ticket, you should be able to find an indication as to whether or not the transaction was a solicited trade or trade unsolicited.

Who is responsible for an unsolicited trade?

The responsibility for unsolicited trades therefore lies primarily with the investor, while the broker merely facilitates the investor’s proposed transaction. The status of a trade as solicited or unsolicited is hugely important when an investor claims unsuitability.

What happens if I do an unsolicited stock trade?

The firm I am at tells me that if I do an unsolicited trade that I do not feel is in line with the client profile (i.e., the profile is moderate and the client wants to be aggressive or speculative, i.e., buy a low-priced (under $5), exchange-traded stock), as long as I have a non-solicit signed by the client I am covered.

Can a broker be held liable for an unsolicited trade?

Ultimately, if the trade was your idea, a FINRA arbitration panel likely will be very reluctant to hold brokers responsible for your losses. To be sure, it is not impossible to hold a broker liable for negligence related to an unsolicited transaction, but still it is far more challenging to prove liability than it is for a solicited trade.