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Disputes and lawsuits in the field of stock exchange and over-the-counter

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Lawsuits of the stock market

In the past, people had to keep their cash capital with them; Because there was no trusted organization and institution capable of accepting people’s capital and generating profit from them. While today there are many organizations and institutions that each person can invest in and share in their profits depending on their wealth. One of these investment markets is the stock market. In this article, we will examine Lawsuits of the stock market.

The Securities and Exchange Organization is a non-governmental public institution that has a legal personality independent from the government and its budget is provided by receiving fees from companies or a part of the admission rights in various stock exchanges or other sources of income mentioned in the regulations. becomes

The advantages of this market are that it is more profitable than other investment methods, there is complete certainty about its legality, it is possible to find out about the market situation at any time, and that the invested amount can be converted into money at any time with speed and ease. has criticism

What are the types of stock market?

The stock market is divided into four categories in a general classification:

1- Stock Exchange: The stock exchange market started its activity in February 1346. Securities are actually papers that have financial value and the possibility of transfer and prove the ownership of their owners in stock companies.
2- Commodity Exchange: This type of stock exchange started its work in 1982. In this market, sellers offer their goods, which are often raw materials, to buyers after pricing by relevant experts.
3- Over the counter: This market started its activity in 1987. Sometimes some companies do not have the necessary conditions to enter the stock market. For such companies, an over-the-counter environment was created, the only difference from the stock exchange is that it has easier conditions for acceptance. One of the most important services offered by the exchange is accepting shares of public companies.
4- Energy Exchange: In this market, there is no news of stock and over-the-counter transactions of companies such as transportation, cement or food companies; Rather, only energies such as oil, gas, electricity, petrochemical products and securities related to these goods are traded in this market, and the purpose of its formation is transparency and price discovery in energy markets and transactions.

Other financial institutions active in the securities market include: deposit and settlement companies, brokers, capital providing companies, market operators, investment consultants, rating agencies, investment funds, pension funds, etc.

Lawsuits of the stock market

How many types of disputes and Lawsuits of the stock market are divided into?

Currents governing lawsuits in the stock market in recent years caused many shareholders to look for ways to sue the stock market and complain about the beneficiaries of the capital market. In general, disputes and lawsuits in the stock market are divided into three categories, which are:

1- Differences between brokers and capitalists
2- Infractions
3- crimes

In this article, we try to briefly examine the types of differences between brokers and capitalists. Differences between investors and brokers are either financial or non-financial. In most cases, the violation of non-financial rights has financial effects as well, and of course you can consult a lawyer and legal advisor for such legal claims.

What are the violations of stock brokers?

Some of the most important violations of stock brokers that are the subject of stock market lawsuits and investor complaints are:

Selling shares of shareholders without their permission

Selling an investor’s shares without his permission is one of the disputed issues.

If the investor and shareholder claims that the sale of shares was done without his order and instructions, the burden of proving the opposite of this claim is on the broker himself. Proving the opposite of the above claim becomes difficult when the sales license is issued over the phone. In this situation, the broker does not have any documents that indicate the permission to sell shares. In this way, one of the disputes and lawsuits of the stock exchange is when a shareholder who had issued a license to sell his shares through a method such as a phone call, is denied the issuance of the license and complains to the broker claiming that the shares were sold in a nosy manner.

Selling shares, less than the ordered amount

Another financial dispute and lawsuits in the stock market that may occur between brokers and investors is that the broker sells less shares than the amount determined and requested by the investor. In this case, if the share price decreases and the shareholder suffers damage due to the non-sale of the remaining shares, he has the right to complain, and if he can prove the fault of the broker in not selling that amount of shares, the broker will be ordered to pay the difference in price to the shareholder. .

Purchase of shares other than the shares ordered by the investor

This claim is raised when, despite the shareholder’s order to buy the shares of a particular company or insisting on changing his shares, the brokerage company refuses to fulfill such an obligation and argues that the desired shares of this company or the shares previously purchased for the client has done, it has more efficiency and profit. If doing this action causes damage to the shareholder, there will be the right to file complaints and claims of the stock market; Provided that the customer proves that he has explicitly mentioned the name of that particular company in the issued purchase order.

Broker’s delay in executing investor’s sell order

One of the cases of disputes between brokers and shareholders is when the broker, despite the investor’s order, delays the sale of shares without any valid reason and sells the share at a later date with a lower balance (compared to the time of issuing the sale order). to sell In this case, the shareholder can file a complaint and ask for compensation for the damage caused, based on the fact that the broker has acted against the principles of representation and representation.

Failure to comply with the right of priority in the allocation of shares (in the initial offering)

One of the advantages of the initial offering that often occurs in public companies is that it has a significant profit, and for this reason, the desire and demand to buy this type of stock is very high; While the amount of shares that are offered and given to each of the investors is very limited. That is why many investors ask brokerage companies, which often have a specific quota in these cases, to sell them the desired shares at the same price as the initial offering. If the brokerage company does not respect the priority in the sale of this type of shares or violates the principle of fairness and justice in the execution of their purchase and sale orders, it will be held civilly liable and will be subject to lawsuits from the stock exchange and complaints from shareholders.

Not respecting the right of priority of the customer

Since the price of securities may change and fluctuate at the moment, and because the speed of stock exchange transactions is very high, it is very important to record the exact time of issuing the customer’s order. Therefore, it is necessary for the shareholder to write down the exact time when completing the application form. On the other hand, the broker is also obliged to execute the orders based on the time order. If the broker does not respect the right of priority in the execution of the order and prefers the execution of the order of another customer and as a result of this (due to the change in the price of the securities) causes a loss to the shareholder with the right of priority, he is responsible and in case of a complaint , should be accountable.

Late payments, settlement matters and unauthorized fund transfers

Another case of dispute refers to the situation when the brokers inform the investors about the transaction very late after selling the shares, or because of the weakness of the system, they do not register the transactions on time. Therefore, late payment of funds, transfer of funds without authorization, delaying settlement matters without legal authorization, or not respecting the priority of a shareholder in the settlement of his contract, is one of the disputes between brokers and shareholders, which is complained by shareholders. take In the previous pages, we mentioned the most important financial violations of brokers that are complained about by shareholders. In the following, we will try to examine another part of the disputes between brokers and shareholders, which is related to non-financial violations of brokerage companies.

Lawsuits of the stock market

Broker’s abuse and personal use of clients’ funds

If the brokerage company misuses the funds entrusted to it for the purpose of buying and selling shares, it has committed a violation and will be obliged to compensate the damages in case of lawsuits from the stock exchange and shareholder complaints and stock exchange claims.

Incorrect behavior of operators of brokerage companies

Another violation of brokerage companies, which is the subject of shareholders’ complaints, is related to the inappropriate behavior of the personnel of these companies. If the personnel of the brokerage companies do not respond to the criticisms received or do not implement the legal orders of the shareholders and act based on personal interests, they have committed a violation and will be fined by the investor’s complaint.

False and misleading advice to customers

If the brokers and brokerage companies under the influence of various factors such as lack of skill, lack of knowledge, bad intentions, etc., give wrong advice and incorrect information to the shareholders, and as a result of these things, cause damage to them, with the complaint of the plaintiff, a fine They will be.

Failure to provide an invoice to the investor

One of the legal requirements of the stock market is that the broker, after making any transaction on the stock, must provide the client with a valid invoice so that the client can monitor and monitor the status of his user account. If the brokers do not prepare the invoice of the actions taken and the status of the transaction and provide it to the customer within 24 hours after the end of the day of the transaction, they will commit a violation of this paragraph.

The field of stock market litigation is an emerging and specialized field. As you have seen in the text of the article, the specialization of the space of stock market lawsuits requires that the buying and selling of stocks be done by stock brokers and specialists instead of shareholders. As a result, stock market lawsuits and complaints in this area become completely specialized and complicated.


If a shareholder wants to complain about the violations of stock brokers, there are many ways in front of him; For example, these types of lawsuits can be filed in the Complaints and Legal Protection Department (Semta), branches of public courts of the judiciary, branches of the National Inspection Organization, the Stock Exchange Brokers Association, or the official system for registering violations of the stock exchange.

The preparation of the complaint and the way of filing the complaint in the above institutions are not the same. Maybe the procedure and the quality and speed of handling in each of them are different from the other. Based on the issue of the dispute, choosing the best institution from among the above authorities and increasing our success rate by preparing the best complaint and citing the strongest and most reliable evidence is a very complex and specialized task and requires experience. . Maybe the lawyers who are familiar with the legal generalities, due to ignorance and inexperience in the world of lawsuits in the stock market, may not succeed in the cases of this field.

Dadista Law Firm is proud to cooperate with experienced lawyers in various legal fields, including stock market and non-stock market. Applicants can refer to the institute to get specialized advice and register and follow up any complaints of the stock market claims, or contact the institute through other means of communication mentioned on the main page. Dadista’s lawyers will be with you from the beginning of the filing of the complaint to the end of the proceedings.

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What are the types of stock claims?
Exchange disputes and lawsuits are divided into 3 general categories: disputes between brokers and capitalists, violations and crimes.
Can wrong advice to customers be sued in the stock market?
If the brokers and brokerage companies under the influence of various factors such as lack of skill, lack of knowledge, bad intentions, etc., give wrong advice and incorrect information to the shareholders and cause damage to them as a result of these things, with the complaint of the plaintiff. , will be fined.
Is it necessary to provide an invoice to the customer?
One of the legal requirements of the stock market is that the broker, after making any transaction on the stock, should provide the customer with a valid invoice so that the customer can monitor the status of his user account. If the brokers do not prepare and provide the invoice of the actions taken and the status of the transaction to the customer within 24 hours after the end of the day of the transaction, they will commit a violation of this paragraph.

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