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In what ways could I be a victim of securities fraud?

If you are a Florida business investor, it is important for you to get a fair chance at getting money back after investing in helping a company grow. One bad investment could cause you to suffer severe financial loss and threaten your ability to make future investments.

As such, you do not want to be a victim of securities fraud. Typically, instances of securities fraud involve someone issuing false information about a company or about the value of that company’s securities.  This false information may form the basis of bad financial decisions carried out by others

One area of concern is insider trading. Insider trading can occur when someone is privy to confidential data and uses that information as the basis for purchasing or selling stocks prior the public being made aware of the data.

Sometimes acts of securities fraud could be committed by a director or officer of a company who gives shareholders inaccurate financial information. For example, if the director or officer leads stockholders to believe that the company is thriving, when in fact it is foundering, then stockholders may be encouraged to buy stock that is worth less than implied.

If you believe that you have been victimized by a company or individual who has engaged in unscrupulous securities-related activities, you may wish to contact a Florida business litigation attorney. Your investments are intended to help develop and support companies in their enterprises. When a company betrays your trust, it not only affects you negatively but is also creates distrust among others who want to invest in worthy companies.

Holding those who have acted dishonestly accountable may not only help you recover your financial loss, but may also discourage others from attempting to perpetrate fraud in the future.