Securities law regulates the exchange and issuance of stock shares from publicly held corporations and privately held corporations, and the conduct of stock brokers and exchanges. Securities Fraud is a crime in which securities investing or trading laws have been violated. The definition of a security encompasses many things including stocks, bonds, commodities and other investments. Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to buy securities based false statements.
Examples of securities fraud include providing false information on a company financial statement, providing false information on SEC filings, lying to company auditor, stock manipulation schemes, insider trading, and broker embezzlement.