Securities are representations of company ownership; whether that's a stock, bond or option. There are federal laws that govern the way that securities are traded in the United States. This is to ensure that the buying and selling of securities are done fairly, and it protects the integrity of the practice.
Overtrading, which is commonly called churning, is an illegal practice that can cause you to lose money as an investor. Though this is prohibited and your broker should never do it, if they have control of your money and your account, you need to know what red flags to watch out for.
If you have a financial advisor or are involved in an investment program, you expect that the person giving you advice is qualified to do so and has the best intentions. While this is likely to be the case, there are, unfortunately, many investment scams and instances of fraudulent investment advice in New York.
Even the most lucrative investors can lose money from time to time. In addition, all financial advisors can make mistakes when it comes to predicting the health of the market. This is why all investment losses cannot be automatically attributed to a case of securities fraud.
If you lost a lot of money due to investing in a program that was unsuccessful, you could be facing financial difficulties that have changed the way you live your life. You might be struggling financially to the point that you are considering filing for bankruptcy. In addition, you may worry about losing your home or facing other consequences due to debt that has accumulated.
When a company is looking to sell its securities, its owners must be aware of the laws in place that regulate securities across the United States. These laws were put in place mainly to protect investors and to increase transparency so that buying and selling could take place with full disclosure.
If you invest your time or money into a company in the state of New York, it is likely that you will be doing so based on the information that you believe to be true about the organization. When this information proves to have been incorrect, your investment could be a poor one. If the company has intentionally misled you, they could be guilty of securities fraud.
Companies going public and offering stocks must follow specific rules. When they don't, there is a chance that criminal charges might follow. In some cases, civil lawsuits are possible. It is imperative that anyone who is in this profession understands what they are expected to do to avoid legal issues.