What is Securities Fraud? - Aiman-Smith & Marcy
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What is Securities Fraud?

There are many different types of fraud that occur on a regular basis. Sometimes it is easier to see that something is going on, while others can be harder to catch. Securities fraud is becoming more serious and it is something that you need to be aware of, if you are investing your money for the future. You want to make sure that you and your money is protected.

Here are some questions that you need to learn in order to determine whether or not you have been a victim of securities fraud.

What are securities? 

When you talk about one’s securities, you are discussing their investment funds. This can be stocks, bonds, or even mutual funds.

When you own stocks, you own a part of the company. You can receive a part of the profits of the company. This is called dividends. You will get your percentage of the profits, depending on the percentage of the company that you own.

Securities are bought and sold in a regulated market. A common one is known as the New York Stock Exchange.

What is securities fraud? 

When talking about securities fraud, it is basically an attempt to manipulate the investment market in an illegal fashion. Almost anyone can commit securities fraud. Single people can commit fraud, as well as large corporations and even brokers.

Most cases of securities fraud are brought up by investors who have lost money because of it. The more investors who are involved, the more likely the case will be successful. It can be hard for a single person to go up against a corporation when dealing with securities fraud.

What are some examples of securities fraud? 

Someone could be falsifying numbers to make their company look like they are in better financial shape than they are. Because of this, more investors may want to buy stock, yet their stock value might not be worth very much. When this is discovered, their stock prices may drop, and everyone who invested when it was higher may be interested in pursuing legal action.

Mutual fund fraud happens when dishonest mutual fund managers get a hold of your money. They may secretly engage in delayed trading, without the investors knowing. These managers may not have the best interest of the investors in their minds as they move their money.

Insider trading is a form of securities fraud. It happens when someone who is affiliated with the company offers information to investors so that they can make a decision about whether or not to invest in a company. They may even sell the stocks themselves.

This can be completed by employees, directors, and any other people in a position of power. There is a fine line on whether or not insider trading is legal or illegal, so it is important to consult with a lawyer about your case.

Because of the age that we live in, securities fraud can be completed through the internet. Many people can give false information over the internet and on forums, so people make bad decisions with their investments. They may also sell stocks at inflated prices, among other ways that the internet can be used to complete fraud.

So, what can you do if you are concerned about security fraud? 

If you are interested in learning more about security fraud, or if you are concerned that you may need to seek the advice of a lawyer, don’t hesitate to contact us. We are proud to offer the services of experienced securities class action attorneys. Don’t hesitate to contact us today at Aiman-Smith & Marcy by phone at (510)817-2711 or online.