web analytics
October 1, 2014 / 7 Tishri, 5775
At a Glance
Judaism
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



Buy!

Business-Halacha-logo

Mr. Scher had a portfolio manager for his investments, but preferred to track certain stocks himself. One was TorahTech, a start-up that specialized in harnessing new technology to disseminate Torah.

The company was intriguing and showed promise, but hadn’t succeeded yet in its marketing efforts. Mr. Scher considered the company overpriced at the current cost of $6 a share, but worth grabbing if its price dropped significantly. He instructed his portfolio manager, Mr. Gelber, to buy 10,000 shares if the price dropped to $4.

Rumors of a 2nd quarter loss, combined with a fresh product line aimed at the new Daf Yomi cycle, set the stock on a volatile course. For two weeks it oscillated between $4.50 and $7 a share. When the quarterly report was finally issued, the stock descended to $4 for a few days.

A month later, though, TorahTech’s new Daf Yomi products began selling big. The stock began a steady climb, eventually hitting $8 a share six months later.

Mr. Scher instructed Mr. Gelber to sell the 10,000 shares of TorahTech. He anticipated earning 100% profit on the sale.

Mr. Gelber checked the account. “You don’t have any shares of TorahTech,” he said to Mr. Scher.

“What do you mean?!” Mr. Scher asked. “I instructed you half a year ago to buy 10,000 shares when the price dropped to $4.”

“Let me check one moment,” said Mr. Gelber. He reviewed the account orders and acknowledged, “Somehow I missed that order.”

“That’s $40,000 lost!” exclaimed Mr. Scher. “I’ve been following that company for months.”

“I understand,” said Mr. Gelber. “At this point, though, there’s nothing to do, unless it drops again or you anticipate further growth and want to buy now.”

“I don’t want to buy now,” replied Mr. Scher. “The company is reaching a plateau. I’m really upset that you missed the order.”

“I’m sorry,” said Mr. Gelber. “I usually enter orders into the computer immediately, so that the purchase is made automatically.”

“I feel you should compensate me for the loss,” said Mr. Scher. “It was sheer negligence on your part.”

“That seems extreme,” replied Mr. Gelber. “Anyway, it’s not really a loss, just a missed opportunity for profit. I’m willing to take it up with Rabbi Dayan, though. Let’s go talk with him.”

“Mr. Scher does not have to pay for the $40,000 in this case,” ruled Rabbi Dayan. “The Tosefta teaches that if an investor gives money to an agent to buy merchandise and sell it for a shared profit but the agent didn’t buy, the investor has only a complaint against him [C.M. 183:1].

“Similarly, the Yerushalmi writes that mevatel kiso shel chaveiro – a person who restrained his friend’s money and prevented him from earning profit – has only a complaint. This is, at most, a form of potential grama.” [See Shach 61:10; 292:15; Pischei Choshen 12:36]

“Are there any cases in which a person has to cover lost profits?” asked Mr. Scher. “The Mishnah (B.M. 104a) teaches that a farmer who undertook to work another’s field and share the crop, but left the field fallow, must pay whatever the field was expected to produce,” answered Rabbi Dayan. “This was a generally stipulated condition that became standard [328:2].

“Furthermore, the Gemara [B.M. 73b] discusses the case of a person who gave money to an agent to buy wine for him during the market season. According to one opinion, if the agent neglected to buy then and the price rose, he must still provide the wine at the cheap price. Some authorities derive from this that if he certainly could have and the loss is clear, the agent has to pay [Nesivos 183:1; Chasam Sofer C.M. 178 ].”

“How is it different from the original case in the Tosefta?” asked Mr. Gelber.

“The Nesivos [306:6] explains that the Gemara refers to a contracted worker [kablan] or partner,” answered Rabbi Dayan. “We treat the negligence to buy as backing out of a davar ha’aved, so that a kablan has to pay even for lost profit opportunity [306:3]. The Tosefta refers to an agent who was not paid, or to a salaried worker [po'el] who was entitled to back out.”

“Why shouldn’t Mr. Gelber have to pay, then?” asked Mr. Scher. “He’s a contracted broker.”

About the Author: Rabbi Meir Orlian is a faculty member of the Business Halacha Institute, headed by HaRav Chaim Kohn, a noted dayan. To receive BHI’s free newsletter, Business Weekly, send an e-mail to subscribe@businesshalacha.com. For questions regarding business halacha issues, or to bring a BHI lecturer to your business or shul, call the confidential hotline at 877-845-8455 or e-mail ask@businesshalacha.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Buy!”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Abu Usamah Somali, thought to be Farah Mohammed Shirdon of Calgary, Alberta in Canada.
Canadian ISIS Fighter Threatens to Behead Netanyahu [video]
Latest Judaism Stories

On Sunday, Jews will be refraining from food and drink from dawn until sunset to commemorate the Fast of Gedaliah. Following Nebuchadnetzar’s destruction of the First Temple and exile of most of the Jews, the Babylonians appointed Gedaliah ben Achikaam as governor of Judea. Under Gedaliah’s leadership, Judea and the survivors began to recover. On […]

On the beach

As we enter the Days of Awe, we must recognize that it is a joy to honor and serve true royalty.

Rabbi Avi Weiss

On Rosh Hashanah we are taught that true self-analysis involves the breaking down of walls

PTI-092614-Shofar

When we hear the words “Rosh Hashana is coming” it really means Hashem Himself is coming!

Who am I? What are the most important things in my life? What do I want to be remembered for? If, as a purely hypothetical exercise, I were to imagine reading my own obituary, what would I want it to say? These are the questions Rosh Hashanah urges us to ask ourselves. As we pray […]

We recently marked the thirteenth anniversary of 9/11 – that terrible day when the symbols of man’s power and achievement crumbled before our eyes and disappeared in fire and smoke. For a very brief moment we lost our smugness. Our confidence was shaken. Many of us actually searched our ways. Some of us even learned […]

Why am I getting so agitated? And look how we’re treating each other!

While women are exempt from actually learning Torah, they are obligated in a different aspect of the mitzvah.

Question: I recently loaned money to a friend who has been able to repay only part of it. This was an interest-free loan. We exchanged a signed IOU, not a proper shtar with witnesses, since I have always trusted her integrity and only wanted a document that confirms what was loaned and what was repaid. Now that shemittah is approaching, what should I do? Should I forgive the loan? And if my friend is not able to repay it, may I deduct the unpaid money from my ma’aser requirement?

Name Withheld

We must eat, sleep, work, and care for our dependants. How much time is left over after all that?

Once we recognize that our separation from God is our fault, how do we repair it?

Chatzitzah And Its Applications
‘Greater Stringency Applies To Hallowed Things…’
(Chagiga 20b-21a)

To choose life, you must examine your actions in the period preceding the Days of Awe as an unbiased stranger, and render your decision.

Rabbi Dayan took a challah and some cooked eggs. He then called over his 15-year-old son, Aharon. “Could you please ask your friend Chaim from next door to come over and help me with the eruv tavshilin?”

This world has its purpose; it has been ideally fashioned to allow man to grow.

More Articles from Rabbi Meir Orlian
Business-Halacha-logo

Rabbi Dayan took a challah and some cooked eggs. He then called over his 15-year-old son, Aharon. “Could you please ask your friend Chaim from next door to come over and help me with the eruv tavshilin?”

Business-Halacha-logo

When the Kleins returned, however, they were dismayed to see that the renters did a poor job cleaning up after themselves.

“Tony said that the code in most places in the U.S. is at least 36 inches for a residential guardrail,” replied Mr. Braun. “Some make it higher, 42, or even 52 inches for high porches. What is the required height according to halacha?”

“The Torah states in Parshat Ki-Teitzei: ‘If you build a new house, you shall make a fence for your roof. I think it’s your responsibility.”

On Friday afternoon, Dov called Kalman. “Please make sure to return the keys for the car on Motzaei Shabbos,” he said. “We have a bris on Sunday morning and we’re all going. We also need the roof luggage bag.”

“We’re leining now, and shouldn’t be talking,” Mr. Silver gently quieted his son. “At the Shabbos table we can discuss it at length.”

“Guess what?” Benzion exclaimed when he returned home. “I just won an identical Mishnah Berurah in the avos u’banim raffle.”

“Do I have to repay the loan?” he asked. “Does Yosef have to reimburse me? What if doesn’t have that sum, does he owe me in the future?”

Printed from: http://www.jewishpress.com/judaism/halacha-hashkafa/buy/2012/06/14/

Scan this QR code to visit this page online: