Legal Definitions - droit d'exécution

Definition: Droit d'exécution (drwah dek-say-kyoo-syawn) is a French legal term that refers to a stockbroker's right to sell securities bought for a client who later refuses them or to sell deposited securities to secure the broker against a loss in buying for a client.

Example 1: If a stockbroker buys stocks for a client, but the client refuses to accept them, the stockbroker has the right to sell those stocks to someone else to avoid a loss.

Example 2: If a client asks a stockbroker to buy securities for them, the stockbroker may sell some of the client's deposited securities to protect themselves against a potential loss.

These examples illustrate how the droit d'exécution gives stockbrokers the right to protect themselves against financial losses when working with clients. It allows them to sell securities that they have purchased for a client but are no longer wanted or to sell deposited securities to cover any potential losses.