Negligence occurs when a brokerage firm and/or its representatives fail to act in a reasonable and prudent manner. This typically happens when the broker or member firm fails to adhere to the standards of care established by the securities industry promulgated through FINRA rules and regulations. Negligence can stem from an intentional act (i.e. selling or purchasing the wrong securities) or it can stem from an omission or failure to act (i.e. failing to place a securities order).
