Just now, i was shocked, when i open sold note, Some stocks have been forced sale. Ok let me brief my scenario, I have been mainly dealing with capital trust.
I am with Acuity due to my friend who is one the broker. Generally I don"t buy on credit whit Acuity. After announcement of relaxing credit, i just asked from my broker How much u can allow credit. He said 50% of my portfolio and u can settle with in one month, then i bought some stocks ( exposure about 40% of my portfolio), then on last Thursday He called me and told, his mangers requested to either settle or sell some stocks to reduce the exposure by 10% due to the month end regulator reporting, balance to be settled he can manage it for one month. Then i sold some stock on break-even and some are on small loss.
On Friday I did not get any calls from my brokers or even any other staff, Now the sold note shows the entire balance to be settled has been forced sale with out informing me. Now i called to my broker He said, due to the month end reporting, his manger did forced sale to some of A/c who has out standing. Then i asked that, You should have informed me, He said brokers has a right to do the force sale.
I do not worry, if they sold it on profit or even at break even. But what has happened it they sold of some stock @ very lowest price ( Buyers quote) and this results the huge loss.
Friends pls help to this situation, Can i make a complaint to SEC. As per my understanding, I really do not know whether the broker has a right to forced sale or not, even if he has a right He must have to inform to the clients for the option before selling Am I right.
But nothing was happened to my case. So Friends whoever dealing with Acuity Pls be careful and check with ur Portfolio.
Friends Pls help on this.
Last edited by seyon on Wed Aug 31, 2011 11:58 am; edited 2 times in total