Securities Fraud

Securities fraud refers to illegal activities involving the deception or manipulation of investors in connection with the purchase or sale of securities. Common forms of securities fraud include insider trading, market manipulation, Ponzi schemes, and providing false or misleading information about a company’s financial health. Securities fraud violates federal securities laws and can result in significant financial losses for investors, as well as legal consequences for those involved.

Example

A company executive engages in insider trading by using confidential information to buy or sell shares before a major announcement, committing securities fraud.