Eduardo was a licensed stock broker in the state of New York.Two years ago,he suggested to his client James that he invest his entire Individual Retirement Rollover account valued at $800,000 into the stock of a high technology company with strong growth potential.After the trade was conducted,James became the owner of several thousand shares.However,the company faltered during a deep recession,and the value of James's holdings decreased to less than ¼ of the purchase value.He decided to sue Eduardo for providing what he considered to be bad advice,and won a hefty sum of money.Eduardo lost his job with a major financial services company,and eventually lost his license to sell investments.Eduardo may have benefited from ___________________.

Question

Quizplus · Accepted Answer

Eduardo may have benefited from professional liability insurance, also known as errors and omissions insurance, which provides coverage for professionals who give advice or provide a service to clients. This type of insurance can protect against claims of negligence or mistakes made in the course of providing professional services. If Eduardo had professional liability insurance, it could have helped cover the costs of the lawsuit and any damages awarded to James.

Eduardo Was a Licensed Stock Broker in the State of New