Hudhaifa R. A. The Law Applicable to Brokerage in The Stock Market A Comparative Study

Abstract

Brokers carry out operations for the benefit of their clients, as they are prohibited from carrying them out for their personal benefit, except in cases and conditions specified by law. Despite this, we find brokers carrying out, on behalf of their clients, the operations of buying and selling a certain amount of securities offered for trading on the stock exchange, but in their personal names, as brokers act in these matters. Cases are as if they were commission agents. This situation does not arise from an automatic application of the customs applicable in brokerage contracts, but rather arises from an obligation on the brokers imposed by their professional system. There is no legal relationship between the seller and the buyer or between the broker and the client of another broker, as the relationship is limited to... The stock market is between two brokers, or more precisely, the broker contracts with another broker, and thus the process takes place between two brokers under the protection of their two agents. The seller’s broker receives the sale and the buyer’s broker receives the price. Each of the two brokers owns the claims of the seller and the buyer before the other, and the broker and the customer (the client) own each. One before the other, agency claims.