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.
Securities fraud can cost you time and money. In some cases, you might be stripped of voting rights and other duties that come with being involved in publicly traded companies. Elizabeth Holmes, founder of Theranos Inc., recently entered into a deal with the U.S. Securities and Exchange Commission (SEC) that has several implications for her future.