Securities fraud
From Wikipedia,
Securities fraud, also known as stock fraud and investment fraud, is a practice in which investors make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws.[1]
Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.[2]
Securities fraud includes outright theft from investors and misstatements on a public company's financial reports. The term also encompasses a wide range of other actions, including insider trading and front-running and other illegal acts on the trading floor of a stock or commodity exchange.[3][4]
According to the FBI, securities fraud includes false information on a company's financial statement and Securities and Exchange Commission (SEC) filings; lying to corporate auditors; insider trading; stock manipulation schemes, and embezzlement by stockbrokers.[5]
Contents
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* 1 Types of securities fraud
o 1.1 Corporate fraud
o 1.2 Internet fraud
o 1.3 Insider trading
o 1.4 Microcap fraud
o 1.5 Accountant fraud
o 1.6 Boiler rooms
o 1.7 Mutual Fund fraud
o 1.8 Short Selling Abuses
o 1.9 Ponzi schemes
* 2 Pervasiveness of securities fraud
* 3 Characteristics of victims and perpetrators
* 4 Other effects of securities fraud
* 5 Related subjects
* 6 External links
* 7 References
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