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Here is my scenario. I purchased shares via my online broker in a placing. I never received a placing document or signed an order, my online broekr signed for me.

The Trade date was 17th June settlement date 23rd June. The placing shares were to be issued on 23rd June.

However My broker placed the shares in my account and deducted my funds on the 17th June.

I then sold the shares that were available in my account to trade.

The placing was pulled before the settlement date and so the placing shares were never issued.

Where do I stand? This is in UK.

  • What do you mean by placing... were these part of IPO? – Dheer Jun 27 at 14:31
  • I suspect that he may be referring to what is called a private placement in the US which is pre-IPO. @Martin - Your question isn't clear. Did you purchase these shares or was this placing done by your broker without your approval? As for selling other shares in your account, there's no recourse for that since that was your decision. Or are you stating that you sold the placing shares before they were pulled? – Bob Baerker Jun 27 at 23:13
  • "However My broker placed the shares in my account and deducted my funds on the 17th June." I suspect that your broker "noted their (potential) existence" in your account, subject to the placing going ahead as planned. I more strongly suspect (but IANAL) that since you knowingly sold the shares before their distribution was confirmed, you would be liable to the person you sold them to: either to refund the money paid, or, possibly – if they exist outside the (cancelled) placing – to acquire and deliver the shares you sold at the current market rate. – TripeHound Jun 29 at 14:12

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