When it comes to buying and selling stocks, there are a number of details that go into the transaction that are crucial to understand. An experienced business professional or forensic accountant will be able to identify the complexities of such a transaction.
A legal professional, however, generally reviews your transaction details and highlights any obligations or provisions that may be questionable or unfavourable to your interests. It’s up to you to understand what these provisions mean, and what legal options you have if you disagree with them.
One example of important details to make note of are the market and limit orders. These relate to how a stock is purchased – giving you control over how much you are willing to pay for a specific stock, or how much you are willing to accept for a certain stock.
There are pros and cons to how much control you have over your transaction. It’s important to address any questions or concerns you have about a transaction with substantial financial value on the line with a legal professional. He or she will be able to answer any legal questions you have about the transaction, as well as highlight what your options you can pursue should you need to litigate.
For example, it’s important to understand the risks involved with stop orders and short selling. They can be useful to target desired selling prices within a transaction, but they can facilitate a purchase or sale that is unfavourable.
If you find yourself in a situation where you were involved in an unfavourable transaction, it’s important to seek out legal counsel from an experienced business lawyer. The issues involved in complex business and financial transaction can be expensive and costly, which is why it’s important to understand what your legal rights and obligations are, and how to best protect your financial and business interests.