If a broker manages a client account, are they able to swindle money out of a client's account if they short sell stocks in that account?
My mother had a friend who handled her Schwab account. He short sold IBM stock and instead of it going down, it went up like crazy and he never took her out of it. It cost my mother a lot of money that she had to pay back to Schwab.
Does this sound like she got swindled and the broker was making money off her or did the broker just have no clue what he was doing?
This happened in the early 90's and the broker is dead by now. Any info would be something I could tell my mother.