Except in the case of discount brokers serving as mere order-takers, broker-dealers typically advertise themselves as financial advisors who possess great skill and knowledge in the art of financial planning and investing. In our experience, it is common for an investor to follow the advice of a trusted stockbroker or financial advisor. When an investor entrusts the decision making process to a professional advisor, the advisor assumes a legal obligation to exercise due care for the financial well being of the investor. Mismanagement of the account by such an advisor will render the brokerage house liable for all of the financial losses caused by the advisor's negligence or breach of fiduciary duty.

This definition is in context to Securities Fraud. See more contextual defintions for Account Mismanagement.