Investment matters

Simon has been working for many years and has saved a substantial amount of money which he wishes to invest. In addition, he has recently inherited a large sum of money from his father who has just died. The total amount Simon has to invest is $950,000.

Simon is not an expert in investment matters but does keep up with what is happening in business and finance. In the past year, he has been following the progress of two companies in the manufacturing and technology areas. Both companies have been recently listed on the stock exchange and their share value has risen very quickly.

A friend refers Simon to Martin, a financial adviser running his own business.

An appointment is subsequently made and Simon attends the registered office of Martin and meets with Martin. Simon tells Martin of the companies he is interested to invest in and Martin suggests that Simon should do nothing until Martin has had the opportunity of making some enquiries regarding their performance and history. Simon agrees and adds that he has been following the two companies himself for some time and that while he is not an expert in the area, they seem to be performing quite well and he is very interested in investing in them. Martin mentions a number of other investments that should prove very rewarding to Simon and asks Simon to think about whether he would be interested in these other companies.

Shortly after this meeting, Simon and Martin meet again in Martin’s office. Martin advises that the companies Simon mentioned are doing very well and seem to have a very solid balance sheet. He says their assets far outweigh their liabilities and their growth plan is also a very solid one.

Simon says that based on what he has been told and of what he knows about the two companies, he is prepared to invest one third of his money in these two companies. Both parties also agree that investments will be made in some of the companies mentioned by Martin in the first meeting between them. An amount of $350,000 is accordingly invested in the two companies which Simon has been following in the last 12 months. The rest is invested in three companies which were mentioned by Martin in the first meeting.

Some months after the investments for Simon are made, all of the companies in which an investment has been made have dropped substantially and are worth half of the amounts invested in them with a combined value of only $475,000. Simon later establishes that Martin’s research into the all of the companies invested in, has been very general and if Martin had done his research professionally, Martin would have discovered that the companies should not have been invested in, and that investments should have been made in other better performing companies on behalf of Simon.

Simon wants to take action against Martin.

Required:

Advise Simon of his rights in negligence regarding expenses and losses arising from the financial advice provided.

 
<

Answers

Related Questions

None...

Teach for America: How to Inspire Future Leaders (p. 430 in textbook, 3rd edition, paper book) in a three – page paper (excluding title and referenc...

None...

Question: Describe a disease of the human body in laymen’s terms as though you caught it while on vacation. It must be a condition in which a EUKARY...

None...

Please review the below and the attached. Please only address sections 1 and 2 of the attached. Submit the first draft of your IT project proposal aft...

None...

QUESTION DESCRIPTION For the next newsletter, you have been asked to write about the effect of a specific communicable disease on your community. Iden...

None...

Identity Theft Protection Program Assignment RequirementsTo learn more about the ramifications of the Red Flags Rule, you will create a recommendation...

None...

Hello All, As we go forward, please use this as a template to cite the Attend section. Remember that this information is critical to address questions...

None...

After reading Chapter 1 & 2 of your textbook discussion A) four (4) reasons why a threat modeling framework is important? B) What are the four (4) que...

None...

UNIT 1 LAB QUESTIONS WHAT MAKES US SICK When Rishi Manchanda says, “Where health care begins is not the four walls of a doctor’s office, but wher...

None...

#1 Why do these different perspectives matter? Why is it important to understand emic and etic when conducting research? #2 Grounded theory approach i...

None...

Choose a respiratory disease that has a significant impact on society and the health care industry. Some examples are tuberculosis, bronchitis, asthm...

None...

Case Study: The Hack at UC Berkley Hackers broke into a computer at the University of California at Berkley recently and gained access to 1.4 million...

None...

Complete the Effects of Disease on the Health Care Industry: Mental and Behavioral Health worksheet.   "Are you looking for this answer? We can He...

None...

Blow Us Away STI’s Usually, when instructors lecture about Sexually Transmitted Infections during an in-person course, they talk about some surprisi...

None...

The executives are taking your information system proposal seriously. In fact, they think it has the potential to transform the way the organization w...

None...

Assignment Content    The CEO of the manufacturing company you are currently consulting for is planning to have a cross-functional division off-sit...

None...

Three examples of plagiarism are intentional plagiarism which is when a person knowingly copies the work of another person and purposefully did not gi...

None...

Assignment Although your body has several lines of defense to fight off infections, it is very important to do what you can to avoid the pathogens ent...

None...

Term Paper: Virtualization Due Week 10 and worth 210 points This assignment contains two (2) sections: Written Report and PowerPoint Presentation. You...

None...

Bone Diseases – cite any sources used in APA format on a separate page Using an appropriate graphic organizer: Distinguish osteoporosis, osteomalaci...

None...

Perform a search on the Web for articles and stories about social engineering attacks or reverse social engineering attacks. Find an attack that was s...

None...

 As a Masters prepared nurse, you are responsible for knowing basic health screenings for various populations, Read the required readings and refer t...

None...

Fill the attached article form and link to the article Research and locate a current article about IT regulations that has been published within the l...

None...

Information Security Analytics One of the challenges of big data and the use of it to solve problems is understanding the context and quality of the d...

None...

5 page paper on fatty liver disease, pathophysiology, population it affect, diagnostic procedure, complications, treatments(surgical or medications),...

If you didn't find the right answer

Ask Your Questions, We'll notify you once someone answers it