Preventing Securities Fraud
Rather than putting their money in a savings account, many people choose to invest some of their savings in the stock market and other security funds. Investment has the possibility to yield profit and good investors can certainly become wealthy and achieve great results. However, investing in securities might carry some risk as well. Most of the time, these risks come from various fluctuations in the market. There are times when the value of a stock crashes because of certain natural disasters or other unforeseen events and at another time, the stock you bought nearly becomes worthless. In any case, a large amount of money can be lost in the market. Due to this, we hear a financial professional being taken to the court on the charges of securities fraud . However, what exactly is a security fraud? Securities fraud is loosely defined as any misrepresentation of any material information about your investment by your investment adviser or withholding material informati...