Two stockbrokers, in clear violation of the rules of their employer, sold worthless stocks to unsuspecting customers.

Question:

Two stockbrokers, in clear violation of the rules of their employer, sold worthless to unsuspecting customers. There was no question that the brokers did not have actual or implied authority to sell the stock. The customers who lost money sued the brokerage firm, contending it was liable for their losses because the brokers had apparent authority. Did they? [Badger v. Paulson Investment Co., 803 P.2d 1178, Sup. Ct., Ore., (1991)]

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...