Crimes In The Stock Exchange

The stock market can be challenging to navigate for those without substantial experience in the stock exchange. All investors, but particularly beginners, can misinterpret investment opportunities. They can be misled by brokers who provide false information relating to an investment. In situations like these, where the client is purposefully misinformed, the stockbroker is committing a form of securities fraud- also known as investment fraud.

What Is Securities Fraud?

Securities fraud is a term that incorporates a wide range of crimes relating to exchange in the stock market. An example would be manipulating the market to provide a fake outcome or a broker embezzling from their client. If you’ve been the victim of any such crime, then a securities fraud attorney is the most specialized form of legal representation that can assist you. They will help you seek either compensation or further legal action.


A securities fraud attorney can help you take legal action against any investment firm that you feel is responsible for committing fraud against you. They can do so by seeking both settlements and decisions that often result in monetary compensation. Compensations can range from a sum that covers the initial investment loss, to a value that includes the initial investment. Plus any legal fees associated with it. In some cases, victims may be authorized to receive not only a settlement that includes initial losses and associated fees. But also, an excess for any further grievances caused. A securities fraud attorney can help you attain this through a tactful but targeted course of action. First by establishing the strength of your case and then by planning accordingly.vernon 2

If you feel you may have a case, but are not aware of your rights as a shareholder, then a securities fraud attorney can also help you. They will establish the legality of your stockbroker’s actions. As the stock exchange is a business with often unclear regulations, an investment attorney can help its clients interpret laws and understand how and what protects their investments. This is particularly useful if you feel you lost your money unjustly, but have no way of knowing whether the loss was as a result of the market or a wrongdoing by your stockbroker.

Most securities fraud attorneys can also offer consultations to help establish the fees and projected timescale of any case you plan on pursuing. This can be helpful in ascertaining whether your loss is large enough to justify pursuing legal action, or if your initial investment was less than the fees involved in a legal case.