Armstrong v. Bickel

Citations

• 217 Pa. 173
• 66 A. 326
• 1907 Pa. LEXIS 679

Syllabus

<p>Principal and agent — Stockbrokers—Short sale — Margins.</p> <p>Whore a customer authorizes a firm of brokers to sell stock “ short ” for him, that is, to sell on his account stock which he does not have and which they will be compelled to borrow for him, his undertaking with them is to reimburse them for any payments they may be compelled to make in the execution of his order, and to repay them for any losses that may result from it. In such a case in a rapidly rising market, the brokers, after their customer has refused to put up more margin, may purchase the stock, and charge the loss to his account, and they are not obliged to take into consideration rumors communicated to them by him that the stock may on the following day be settled for on a lower basis; nor are the brokers bound to hunt their customer up, and repeat to him every rumor or piece of information that may come to them before they can take steps for their own protection.</p>