Vollmer v. Newburger

Opinion by

Mr. Justice Kephart,

Stock brokers are in some aspects an exceptional class of brokers. When they purchase or sell stock outright they do not act as brokers merely; they serve in a larger capacity, and are more than brokers, according to the legal signification of that term. Their engagement goes beyond mere agency. The responsibility is vastly different ; it is in the nature of a trust, to be executed for the principal: 9 C. J. 511, section 12. The broker in these transactions undertakes to insure to his principal the solvency of the purchaser. He, in effect, guarantees that the…