Possible share allocation error: Who's responsible?

[ggumpshots]

My friends trading account has substantially more shares of a Company than she bought.

She doesn’t recall purchasing additional shares, receiving bonus shares or a split, though the additional shares could be hers. The share certificate proves ownership, Right?
She has had them almost a year.

If she sells them at a substantial profit who is financially responsible should this be an error. ( funds to be returned or shares repurchesed and returned.)

How can she find out if it is not an error?Her trading account purchases dont tally.

 

[tech/a]

Refer to broker.
The error if there is one will be rectified.

 

[skc]

My friends trading account has substantially more shares of a Company than she bought.

She doesn’t recall purchasing additional shares, receiving bonus shares or a split, though the additional shares could be hers. The share certificate proves ownership, Right?
She has had them almost a year.

If she sells them at a substantial profit who is financially responsible should this be an error. ( funds to be returned or shares repurchesed and returned.)

How can she find out if it is not an error?Her trading account purchases dont tally.

Happened to me once. Allocation error wrt a capital raising and ended up with more shares than I subscrbied for. I actually didn't notice and sold the lot on market. I got a call the following day from my broker and everything was reversed. Everything was their fault so I don't have to make good the shares I sold myself, but the profits I booked (only ~$200) was reversed...

If the shares really doesn't belong to your friend, she should probably do the right thing... believe in karma?

 

[Julia]

Happened to me once. Allocation error wrt a capital raising and ended up with more shares than I subscrbied for. I actually didn't notice and sold the lot on market. I got a call the following day from my broker and everything was reversed. Everything was their fault so I don't have to make good the shares I sold myself, but the profits I booked (only ~$200) was reversed...

If the shares really doesn't belong to your friend, she should probably do the right thing... believe in karma?

If 'your friend' is for one moment considering he/she will get away with selling more than he/she actually owns, he/she is dreaming.
Don't even consider trying to be dishonest.
It has happened to me a couple of times. Once they quickly corrected the mistake almost as soon as it happened and the second time I had to point it out. But absolutely for sure, it would have been corrected anyway if I hadn't.