Securities fraud

Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information.^[1] ^{[failed verification]}^[2]^[3] The setups are generally made to result in monetary gain for the deceivers, and generally result in unfair monetary losses for the investors.^[4] They are generally violating securities laws.

Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company's financial reports, and lying to corporate auditors. The term encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.^[5]^[6]^[7]

^ "Securities Fraud Awareness & Prevention Tips faq by FBI, accessed February 11, 2013
^ Nathaniel Popper (February 10, 2013). "Complex Investments Prove Risky as Savers Chase Bigger Payoff". The New York Times. Retrieved February 11, 2013.
^ "2012 NASAA Top Investor Threats". North American Securities Administrators Association (NASAA). 2011-08-31. Retrieved February 11, 2013. A con artist will use every trick in the book to take advantage of unsuspecting investors, including exploiting well-intended laws, in order to fatten their wallets
^ "Fraud and Financial Crimes". Thomson Reuters. Last updated June 20, 2016
^ "Testimony: Testimony Concerning Insider Trading(Linda Chatman Thomsen, September 26, 2006)".
^ Norris, Floyd (April 14, 2005). "Trading Scandal May Strengthen Stock Exchange". New York Times. Retrieved May 3, 2008.
^ San Francisco FBI web link, supra

[Securities_Fraud_Awareness_&_Prevention_Tips-1] "Securities Fraud Awareness & Prevention Tips faq by FBI, accessed February 11, 2013

[NYT021013-2] Nathaniel Popper (February 10, 2013). "Complex Investments Prove Risky as Savers Chase Bigger Payoff". The New York Times. Retrieved February 11, 2013.

[NASAA2012-3] "2012 NASAA Top Investor Threats". North American Securities Administrators Association (NASAA). 2011-08-31. Retrieved February 11, 2013. A con artist will use every trick in the book to take advantage of unsuspecting investors, including exploiting well-intended laws, in order to fatten their wallets

[4] "Fraud and Financial Crimes". Thomson Reuters. Last updated June 20, 2016

[5] "Testimony: Testimony Concerning Insider Trading(Linda Chatman Thomsen, September 26, 2006)".

[6] Norris, Floyd (April 14, 2005). "Trading Scandal May Strengthen Stock Exchange". New York Times. Retrieved May 3, 2008.

[7] San Francisco FBI web link, supra

[1]

[2]

[3]

[4]

[5]

[6]

[7]