Information on Securities Fraud

Securities fraud occurs when a broker deals with customers to trade stocks or other securities without any regard for the interests of consumers. Stock fraud can be orchestrated by one or at the corporate level. Securities fraud can also financially size ranges from several millions of dollars on deals Penny stocks.
some examples broker securities-related fraud:
- Churning - to create additional broker fees, a form of securities fraud called Churning is used. Churning requires large numbers of transactions, such as buying and selling shares so many different broker generates excessive fees.
- inappropriate - securities fraud involving inappropriate occurs when a broker recommends stocks that are outside the customer& 39;s risk tolerance, which often leads to a lot loss higher than customers can bear.
- excessive - failed to diversify the portfolio, the client can be a form of cheating stock. To protect the assets of clients, the broker should be different types of securities purchased through diversification.
- distortion - this form of fraud occurs when stock broker intentionally misleads customer material facts with regard to the development security.
more forms of securities fraud may occur the executive level, and in some cases, stock fraud basis of the policy of the company, with many of the staff involved in the commission or concealment of illegal practices. The largest stock fraud levels can destroy entire companies through stock manipulation values.
all forms of shares and securities fraud aimed at the violation of investor / broker confidence. The main principle is that the stock fraud investor interests are secondary to the achievement of financial gains can be made by the broker. Stock fraud can destroy individuals and businesses simply by manipulating stock market.
if you feel securities fraud caused you to lose investments, you may wish to contact an attorney familiar with the law of securities fraud.



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