Finance: What is an Unsolicited Order?

An unsolicited order is an order to buy or sell a security demanded by the client.

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Transcript

00:26

Fool noted the massive number of Spinney fidgets things that were selling off the

00:31

shelves the last time you visited Walmart and decided to make an investing

00:35

statement based on that observation and in placing an unsolicited order you are

00:40

legally on your own if things fail ie the broker is exempt from any liability [Exempt from liability stamp]

00:46

for having made an incorrect or improper recommendation or whatever in real life

00:51

brokers have so many layers of legal coverage above their recommendations [A wedding cake]

00:54

that no it really doesn't matter if they sell you 20 bad stocks in a row you just

00:58

have to be appropriate for what you checked on the boxes in the form that [Investment criteria checklist]

01:02

you sent to them that well they're still likely immune to prosecution anyway yeah

01:07

no recourse or well your only recourse is to just fire them and hire this guy [Bonzo the chimp appears]

01:11

to pick stocks for yes yeah asking yourself well really how much worse

01:15

could he do had your broker been the one to stumble on the many sold out signs of

01:21

spinny things at Walmart and then she called you to suggest you buy shares of [Broker calling a client]

01:26

spinny fidget time-wasters.com well then the order would have been

01:30

considered a solicited one and in theory solicited orders carry a higher weight [Exempt from liability stamp is wiped away]

01:35

of scrutiny should something go awry and regulators get involved and basically it

01:40

revolves around that recommendation being appropriate to the risk levels and

01:44

duration levels and other levels of investing prowess that you proffer that

01:49

you actually have and yeah those regulators they mean business you really [Regulator holding a baseball bat]

01:53

don't want to be on their bad side