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Speculation and gambling are similar, with a few important distinctions.
One difference is the perception, sometimes true, that successful
speculators profit due to their skill or an unseen advantage, while
gamblers prosper due to chance or luck. A thin line exist here but the out
come of both is obvious you could lose money. That risk is the sole
responsibility of the speculator or gambler. In gambling it's understood no
lawsuits no problems but in speculation people seek protection from
themselves. The know your customer rule is simply a rule nothing more to
avoid potential problems. Know your customer rule becomes impossible using
the Internet for these firms given the amount of new accounts opened daily
on-line. I believe that the trading firms liability lies in delivering what
services they claim and properly handling of order execution nothing more.
If the firm being sued could prove that the suit brought was simply to
recover loss from lack of judgement, the firm should counter sue that
individual. This would stop a lot of the sore loser law suits. This would
mean doing away with arbitration which I think is not fair for either party.
Robert
At 07:27 PM 7/6/1999 -0400, Robyn Greene wrote:
>I think you'll be seeing more and more of that. The big question I've had is
>what responsibility discount and on-line brokers have in terms of the "know
>your customer" rule (clearly customers have some responsibilities but
brokerage
>firms have responsibilities too - there isn't too much precedent - think the
>case involving Schwab is about the only case I've read about). In a lot of
>states - you have what's called "comparative negligence". I.e., both
plaintiff
>and defendant can be at fault - and the plaintiff's recovery can be
affected by
>his degree of fault (in some states, there's pure comparative negligence, in
>other states the plaintiff must be less than 50% responsible to recover
>anything, etc., etc.). For what it's worth - at the last arbitration I
>attended - I brought up the comparative negligence issue - but neither
attorney
>wanted to talk about it. Robyn
>
>Robert Cummings wrote:
>
>> Saw a TV show about Day Trading on UPfront Tonight. He lost $200,000 in one
>> year and made 120 trades a day. Geez makes me tired to even read that the
>> guy made $30,000 a year. Now the is going to file a lawsuit to get his
>> money back. I hate seeing that kinda thing the blamers not taking
>> responsibility for their own actions. Says he should have not had the
>> opportunity to do that to himself.....pleeeeeeeeease.
>>
>> Robert
>
>
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