{"id":352144,"date":"2023-11-28T14:22:22","date_gmt":"2023-11-28T19:22:22","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/criminal\/criminal-charges\/securities-fraud.html"},"modified":"2023-11-28T14:22:22","modified_gmt":"2023-11-28T19:22:22","slug":"securities-fraud","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/securities-fraud.html","title":{"rendered":"Securities Fraud"},"content":{"rendered":"\n
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Securities Fraud<\/h1>\n\n
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\n By Samuel Strom, J.D.<\/a> | Legally reviewed by Rhonda Earhart, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Generally, securities fraud occurs when someone makes a false statement about a company or the value of its stock, and others make financial decisions based on the false information. In cases of insider trading, insiders (i.e., executives, board members, etc.) buy or sell stocks based on information that isn’t available to the public. <\/p>\n\n <\/div>\n\n\n\n

Although the crime isn’t complicated, it requires understanding\u00a0securities regulation<\/a>.<\/p>\n

Below, you’ll find information on common types of securities fraud<\/a> and how to protect your assets. But if you’re accused of committing insider trading or financial fraud, you may want to speak with a defense attorney<\/a> promptly.<\/p>\n

What Are Securities?<\/h2>\n

Securities are\u00a0negotiable financial instruments that have a financial value.\u00a0People use\u00a0securities<\/a>\u00a0to raise money in both private and public markets. Examples of securities include\u00a0stocks,\u00a0bank notes<\/a>, and\u00a0investment contracts.<\/p>\n

While there are many types of securities, they generally fall into three categories:<\/p>\n