What Is Securities Fraud?
Securities fraud happens in every state, and Texas is no exception. Most types of securities fraud take place when someone intentionally gives false information about a business or its stock value which influences someone else to take a financial action. Here are a few examples of types of securities fraud.
Securities Fraud Types
Executive Level Fraud
Sometimes, a corporate executive will misinform shareholders as to the company’s real financial condition, generally inflating the value of the stock. This can cause people to buy more shares of a company they think is prospering but may, in actuality, be failing, causing the shareholders to lose their money as the company’s profits decline.
In third-party fraud, a person unrelated to the company is presenting falsified information about that company. Or, it may be false information about the stock market or an industry in general. A common scam under this heading is to buy lots of shares of an unknown business, drive up its value with information that’s falsified, and then sell the shares.
Easy Access To Information
With the fast flow of information that is readily available to just about anyone these days, it is much more difficult to keep track of who can get access to your vital data. It’s important to protect yourself so that you can catch potential problems before they get out of hand. A good business attorney in Texas can help keep things in check and running smooth.