The Daily Insight

Connected.Informed.Engaged.

updates

Securities fraud - How To Discuss

Writer Alexander Torres

Securities fraud,

Definition of Securities fraud:

  1. Securities fraud, also referred to as stock or investment fraud, is a type of serious white-collar crime that can be committed in a variety of forms but primarily involves misrepresenting information investors use to make decisions.

  2. Intentional concealment, omission, or ■■■■■■■■■■ of financial information to cheat or take unlawful advantage of investors, in violation of the securities laws.

  3. The perpetrator of the fraud can be an individual, such as a stockbroker. Or, it can be an organization, such as a brokerage firm, corporation, or investment bank. Independent individuals might also commit this type of fraud through schemes such as insider trading.

How to use Securities fraud in a sentence?

  1. Securities fraud can also include false information, pump-and-dump schemes, or trading on insider information.
  2. This type of fraud a serious crime usually involving the investment world.
  3. Examples of securities fraud include Ponzi schemes, pyramid schemes, and late-day trading.
  4. Securities fraud is illegal or unethical activity carried out involving securities or asset markets in order to profit at the expense of others.

Meaning of Securities fraud & Securities fraud Definition