4105. Duties of Stockbroker Speculative Securities

4105. Duties of Stockbroker--Speculative Securities Instruction No 1 Request by Plaintiff Given as Proposed Refused Withdrawn Request by Defendant Given as Modified Requested by Given on Court's Motion Judge Instruction No 1 Stockbrokers who trade in speculative securities and advise clients have a fiduciary duty to those clients: 1. 2. To make sure that the client understands the investment risks in light of his or her financial situation; To inform the client that speculative investments are not suitable if the stockbroker believes that the client is unable to bear the financial risks involved; and Not to solicit the client's purchase of speculative securities that the stockbroker considers to be beyond the client's risk threshold. 3. If these duties are met and the client still insists on purchasing speculative securities, the stockbroker may advise the client about various speculative securities and purchase speculative securities that the client selects. ________________________________________________________________________________ New June 2006