Business Terminology: Securities Fraud

Securities Fraud:  also known as stock or investment fraud. This is a practice that induces investors to make purchases or sale decisions based on false information. It frequently results in losses and violates the securities laws.

Securities fraud consists of deceptive practices in the commodities and stock markets, most are designed to trick the amateur investor out of their money because they think they are going to profit from their investment.

 Types of Corporate Fraud

  • Corporate misconduct
  • Dummy Corporations
  • Internet Fraud
  • Insider Trading
  • Microcap Fraud
  • Accountant Fraud
  • Boiler rooms
  • Mutual Fund fraud
  • Short selling abuses
  • Ponzi Schemes

 Why is this word important today?

Goldman Sachs CEO Lloyd Blankfein and some of his fellow executives decided to hire high profile laywers today to advise them after the US senate referred a report on the bank’s activities, suspect of some kind of fraud, to the Justice Department earlier this year.

 To read more click here.

 Source: Wikipedia, WSJ

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