Securities fraud
deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information
Securities fraud, also known as investment fraud or stock fraud, refers to when a deceptive practice in a stock market or commodity market is committed. The deceptive practice leads investors to make purchasing or sale decisions under false information. That usually means losses in violation of securities laws.[1]
Examples of securities fraud include insider trading, the Ponzi scheme, Internet fraud and corporate fraud.
Any investor can become a victim. However, it usually happens to those age fifty or older. It not only happens to investors, it happens to creditors, employees and taxing authorities.
References
change- ↑ "Securities Fraud". The Federal Bureau of Investigation. Retrieved May 2, 2021.
