Securities fraud

Securities fraud, also known as investment fraud or stock fraud, refers to when a deceptive practice in a stock market or commodity market is committed. The deceptive practice leads investors to make purchasing or sale decisions under false information. That usually means losses in violation of securities laws.[1]

Examples of securities fraud include insider trading, the Ponzi scheme, Internet fraud and corporate fraud.

Any investor can become a victim. However, it usually happens to those age fifty or older. It not only happens to investors, it happens to creditors, employees and taxing authorities.