Selling Away

If your broker solicits you to purchase securities away from the brokerage firm, your broker is "selling away," which is a violation of self-regulatory rules and federal securities laws. Typically, these investments are in the form of private placements, or other non-public investments. If you are the client of a brokerage firm, and your broker solicits the sale of these securities away from the brokerage firm. The sale of unregistered securities is a form of stockbroker fraud or misconduct. Under certain circumstances, you may recover from the brokerage firm.