Securities laws are the regulations and rules set up to govern the sale of instruments like mutual funds, stocks, and bonds. Securities laws are intended to protect the integrity of the market by preventing insider trading, fraud, or market manipulation. The Securities Act of 1934 enforced transparency by requiring publicly traded companies to regularly file reports with the SEC that reveal the company’s financial state.
Public Securities Offerings
Public securities offerings give investors the chance to buy shares of a public company. These shares are usually underwritten by someone who works for an investment bank. The underwriter helps prepare the shares and provides the necessary information to the Securities and Exchange Commission.
A public offering faces closer SEC scrutiny and usually involves detailed conversations between the government and the lawyer representing the company that is offering the securities. Securities lawyers must file a disclosure statement that details a vast amount of information, including the stock issuer’s business, its liabilities, financial condition, and its prospects for the future. After the SEC confirms that the disclosure statement is accurate, the company can begin the sale of securities.
Private Securities Offerings
A private security offering involves the sale of equity or debt to a limited group of investors. These types of offerings do not have to disclose nearly as much information to the SEC as the public offerings, but they must give private disclosure statements to all potential investors. Because these private offerings are not subject to the same regulations designed to protect investors, it is easier to conduct financial frauds.
How Can a Securities Fraud Attorney Help You?
There are many state and federal laws that govern issuers of securities. A securities lawyer can play a vital role in helping to protect your investments.
A securities lawyer can help you understand a company’s financial history or disclosures, as well as advise you on your broker’s legal obligations.
A securities fraud lawyer can also help you root out any potential securities fraud or mishandling of your investments.
Types of broker fraud that may require a claim to be filed by a securities litigation lawyer include:
- Conflict of interest
- Failing to supervise
- Breach of fiduciary duty
- Failure to diversify
- Insider trading
- Excessive trading to boost fees
- Manipulating the market
- Taking unsuitable risks with investments
- Making trades without authorization
The securities lawyers of Kurta Law have years of combined experience protecting investors and helping them understand the complex world of securities. Let them use that experience to help you.