Stock Fraud Lawyer: How it Works, Prevention and Schemes

FraudsWatch.com

<blockquote><p><em><strong>Investment Fraud is a personal financial action executed by a broker without your consent&comma; and you can denounce it&comma; with the help of a lawyer&period;<&sol;strong><&sol;em><&sol;p><&sol;blockquote>&NewLine;<h2>Preventing Securities Fraud &&num;8211&semi; How to Protect Yourself<&sol;h2>&NewLine;<p>Investment fraud is not limited to stock frauds and securities fraud&period; Instead&comma; it spans a wide spectrum of scams that include invention scams and rare item investment scams&period; The scope of investment scams has reached epic proportions with millions of dollars being fraudulently stolen from consumers each year&period;<&sol;p>&NewLine;<p>If you want to protect yourself from investment frauds and scams that you need to learn how to identify the warning signs of a potential scam&period; The first warning sign is that the offer sounds too good to be true&period; The second warning sign is that the seller of the offer is using high-pressure sales tactics such as forcing you to make a decision to invest right now&period; Another warning sign is that you are contacted via phone without requesting information about the investment opportunity&period; The scam artist may also ask for your social security number or credit card information over the phone&period; These are all signs that you are being targeted by a scam artist&period; There are several federal documents and pamphlets that you should read through that tell you what to look for and what scams are currently circulating&period; You can request fraud education materials from the Federal Trade Commission&comma; the SEC&comma; and from your state&&num;8217&semi;s securities regulator&period;<&sol;p>&NewLine;<p>If you find that you have been victimized by a securities fraud or some other type of investment fraud then you need to take immediate action to correct the situation&period; First&comma; you need to report your victimization to the authorities&period; Try to provide them with as much information as you can about who contacted you&comma; how they contacted you&comma; how you funded your investment and any other information that you have&period; You will also want to contact a SEC lawyer&comma; a securities fraud attorney or an investment fraud lawyer&period; They will be able to help you develop a case against the company or person who victimized you&comma; they will be able to answer your questions&comma; and they will help you to win your lawsuit against the perpetrators of the fraud in question&period;<&sol;p>&NewLine;<h2>Laws and Stocks&colon; Bringing Transparency to the Economy<&sol;h2>&NewLine;<p>Every business has an original capital invested at the time of business launch&period; It is different from property and assets&period; The value fluctuates from time to time&period; This stock of a business is divided into shares&period; Based on the total amount of stock&comma; every share is assigned a particular value&period;<&sol;p>&NewLine;<p>Shares represent a fraction of ownership to the business&period; The ownership of this asset is determined by issuing a stock certificate&period; It&&num;8217&semi;s a legal document that authenticates the number of shares owned by a shareholder&period; A private&comma; as well as a public company&comma; can have shareholders&period;<&sol;p>&NewLine;<p>Shareholders are people or another organization owning shares of a company&period; The largest shareholders aren&&num;8217&semi;t retail buyers&period; They are rather corporate entities or other large mutual funds&period; Owning even fifty percent or more shares doesn&&num;8217&semi;t entitle them to use property&comma; equipment&comma; etc of that company&period; This is because the company is considered as a legal entity&period;<&sol;p>&NewLine;<p>In this regard&comma; a stock exchange holds an importance place&period; It is a marketplace where a company with shares has to get enlisted in order to sell shares to several prospective buyers&period; Famous stock exchanges are <a href&equals;"http&colon;&sol;&sol;www&period;bseindia&period;com&sol;">BSE<&sol;a>&comma; <a href&equals;"https&colon;&sol;&sol;www&period;nseindia&period;com&sol;">NSE<&sol;a>&comma; <a href&equals;"http&colon;&sol;&sol;www&period;nasdaq&period;com&sol;">NASDAQ<&sol;a>&comma; etc which can be cited as examples&period;<&sol;p>&NewLine;<p>There are big and small companies whose shares are traded every day on several stock exchanges across the world&period; The market value of several large international corporations like Oracle&comma; Microsoft&comma; Siemens&comma; etc&period; runs into millions of dollars&period; As a result&comma; there is a scope of stock related frauds too&period;<&sol;p>&NewLine;<p>These frauds run into millions or even billions of dollars worth&period; Crimes related to stocks are labeled under white collar crimes&period; This is because of the <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;tag&sol;financial-fraud&sol;" title&equals;"financial" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"646">financial<&sol;a> knowledge required to commit these crimes&period; Since these types of frauds affect not only large-scale stockholders but also retail share traders&period; Class action lawsuit is the obvious option to get relief legally&period;<&sol;p>&NewLine;<h2>Broker Fraud and Class-Action Lawsuits<&sol;h2>&NewLine;<p>Broker fraud is the illegal act of deceiving an investor or violating his or her instructions in order to benefit the broker or the brokerage firm&period; Stockbrokers have a responsibility to act sensibly with clients&&num;8217&semi; money and to avoid unnecessary or unreasonable risk&period; When they fail to do so&comma; they may not only be in violation of the law&comma; but they may also be liable for any financial damages caused to the client&period;<&sol;p>&NewLine;<p>If you suspect your broker of committing fraud and hurting your investments&comma; consider consulting with a securities fraud class-action lawyer as soon as possible&period;<&sol;p>&NewLine;<p><strong>Types of Broker Fraud<&sol;strong><&sol;p>&NewLine;<p>This type of fraudulent activity can be found at all levels of investing&period; There are many ways that a broker may commit fraud&comma; including&colon;<&sol;p>&NewLine;<ul>&NewLine;<li><strong>Unauthorized trading&colon;<&sol;strong> Acting without the client&&num;8217&semi;s permission or violating his or her explicit instructions<&sol;li>&NewLine;<li><strong>Misrepresentation or omission&colon;<&sol;strong> Misrepresenting or omitting facts regarding investments<&sol;li>&NewLine;<li><strong>Unsuitability&colon;<&sol;strong> Making investment suggestions that are not suitable for an investor&&num;8217&semi;s needs or accepted level of risk<&sol;li>&NewLine;<li><strong>Churning&colon;<&sol;strong> Unnecessarily buying or selling stock to gain greater commission payments<&sol;li>&NewLine;<li><strong>Overconcentration&colon;<&sol;strong> Overconcentrating an investor&&num;8217&semi;s stock portfolio in a single stock or a few stocks<&sol;li>&NewLine;<&sol;ul>&NewLine;<p>Any of these acts of fraud can cause significant damage to investors&&num;8217&semi; finances&period; Not only is this type of fraud a violation of the law&comma; but it is also a violation of clients&&num;8217&semi; trust that can qualify as grounds for a class-action lawsuit&period; If you are an investor and suspect or have evidence of broker fraud&comma; you may be entitled to recover compensation for your financial losses&period;<&sol;p>&NewLine;

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FraudsWatch is а site reporting on fraud and scammers on internet, in financial services and personal. Providing a daily news service publishes articles contributed by experts; is widely reported in thе latest compliance requirements, and offers very broad coverage of thе latest online theft cases, pending investigations and threats of fraud.
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