Such damages would aim to compensate the investor under one of two theories: the out-of-pocket rule or the benefit-of-the-bargain rule. (14) The out-of-pocket rule would measure the client's damages based on the difference between what he or she had before the wrongful advice and what he or she had afterward, plus interest.
The benefit-of-the-bargain rule would similarly seek to place the client in the position she would have occupied had the wrongful conduct not taken place, but it does so by taking prevailing market conditions into account.