top of page
  • Writer's pictureGibbs & Sellers

What is securities fraud?

Many of us have heard the term “securities fraud,” but you may wonder what it refers to. Accusations of securities fraud can result in serious potential penalties and consequences, which is why it is important to understand what securities fraud is.

Securities fraud generally refers to circumstances when a false statement is made about a company or the value of stock and a financial decision is made based on that false information. One instance of securities fraud can occur when a director of a company does not correctly report financial information to shareholders. Another example of securities fraud is insider trading. Insider trading occurs when a party with confidential information about the financial status of a company discloses that information before it is made public and that information is used to make financial decisions.

Another type of securities fraud includes third-party misrepresentation. This occurs, for example, when false information is provided to drive the price of a stock artificially high so that the party providing the misleading information can sell their stock for a profit. Securities fraud is a type of white collar crime that can have a significant impact on both those harmed by it and those accused of perpetrating securities fraud.

Securities fraud allegations can be complex, so it is helpful to understand or have trained guidance to help keep assets safe, but also to respond to any accusations of securities fraud if they come up. The better informed the parties are, the better position they are to protect themselves concerning securities fraud using the legal options available to them.

Recent Posts

See All

Securities Commission issues fraud advisory

While there are risks involved in investing, many investors enjoy that risk. If they take a chance on a certain investment, and the payout is significant, and the satisfaction can be even greater beca

The common signs of securities fraud

We are constantly told the importance of making investments, as it could be crucial to the financial stability of one’s future and the future of their loved ones. However, when one is not fully versed

Securities fraud basics

Securities fraud can result in serious consequences for both those accused of securities fraud and those who have been otherwise impacted by securities fraud. Understanding securities fraud basics is

Comments


Contact Us Today for a
Free Case Evaluation & Consultation

To learn more about how we can help and your legal options, call us at 334-289-2255, or send us an email now. We represent wrongful death clients in Marengo, Perry, Hale, Wilcox, Dallas, Sumter, Greene, and Clarke counties.

While this website provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with a wrongful death lawyer, please call or complete the intake form.

How would you like to be contacted?

Disclaimer: The use of the internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

bottom of page