web analytics
January 27, 2015 / 7 Shevat, 5775
 
At a Glance
Judaism
Sponsored Post


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
Israeli soldiers praying as IDF forces seen reinforcing presence in the Golan Heights Northern Israel.
Two Missiles Explode in Golan Heights; IDF Returns Fire
Latest Judaism Stories
Tissot_The_Waters_Are_Divided

Leading by example must be visible, regarding where, when and how-like Nachshon entering the Red Sea

Torah-Hakehillah-121914

Rabbi Yaakov Nagen, a Ram at Yeshivat Otniel, notes that the verse is suggesting that retelling the story of the Exodus is so important that Hashem is performing ever-greater miracles specifically so that parents can tell their stories to future generations.

Parshat Bo

Before performing the 10th plague God makes a fundamental argument about the ultimate nature of justice.

Daf-Yomi-logo

Life Before The Printed Word
‘A Revi’is Of Blood’
(Yevamos 114a-b)

How is it possible that the clothing was more valuable to them than gold or silver?

Question: If Abraham was commanded to circumcise his descendants on the eighth day, why do Arabs – who claim to descend from Abraham through Yishmael – wait until their children are 13 to circumcise them? I am aware that this is a matter of little consequence to our people. Nevertheless, this inconsistency is one that piques my curiosity.

M. Goldman
(Via E-mail)

“It means that the disqualification of relatives as witnesses is a procedural issue, not a question of honesty,” explained Rabbi Dayan.

Property ownership is an extremely important and fundamental right and principle according to the Torah.

The tenderest description of the husband/wife relationship is “re’im v’ahuvim/loving, kind friends”

And if a person can take steps to perform the mitzvah, he should do so (even if he won’t be held accountable for not performing it due to circumstances beyond his control).

Suddenly, she turns to me and says, “B’emet, I need to thank you, you made me excited to come back to Israel.”

Pesach is called “zikaron,” a Biblical term used describing an object eliciting a certain memory

Recouping $ and assets from Germans and Swiss for their Holocaust actions is rooted in the Exodus

Pharaoh perverted symbols of life (the Nile and midwives) into agents of death.

I think that we have to follow the approach of the Tannaim and Amoraim. They followed the latest scientific developments of their time.

More Articles from Rabbi Meir Orlian
Business-Halacha-logo

“It means that the disqualification of relatives as witnesses is a procedural issue, not a question of honesty,” explained Rabbi Dayan.

Business-Halacha-logo

“The issue is not just logistical,” replied Mr. Kahn. “I thought that halacha requires that the beginning of the adjudication and acceptance of testimony be during daytime.” (C.M. 5:2; 28:24)

A few days, Mrs. Feldman called back. “I would prefer a nice cake rather than the chocolate.”

He sent out a memo to the tenants: “In light of the recent burglaries, we’ve decided to implement additional security measures, including hiring a doorman for the weekends.”

“I’m still not sure we have a right to damage his property,” said Mrs. Schloss. “Can you ask someone?”

He stepped outside, and, to his dismay, the menorah was missing. It had been stolen.

“I do not owe anything,” Mr. Feder replied. “However, if I must come – I will.”

Mr. Weiss refused to listen and sued Mr. Cohen in civil court.

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

Scan this QR code to visit this page online: