Different Types of Securities Violations

securities fraud penalties

Securities represent some amount of financial value. Securities are generally given to an investor in the form of a certificate, which gives him the right to get a share of the business’s profits as per the agreements. Securities are generally given by businesses in the form of stocks, bonds and notes.

Different securities owners usually exchange those securities through a securities exchange market. But fraud follows you even in this business. Insider trading and securities fraud are becoming more common by the day. That is why there are many laws that protect and regulate the securities markets. These laws are there to protect the investors.

Here are some of the different types of securities Violations that can get you into trouble. The penalties for securities fraud are really high, so, you better keep away from these violations.

Market Manipulation

This includes the companies, investors or brokers of securities showing false information to their customers regarding the actual value of their securities, their price and availability.


Malpractices are usually unintentional. This happens when a n inexperienced person shows himself to be an expert. This includes brokering without having a valid license. These can get you into trouble.

Insider Trading

This includes the people with knowledge of a company’s stock (inside persons) collaborating with the investors to gain an unfair advantage in the trades. The trend of insider trading is constantly on a rise these days.

Trading Without Authorization

Trustees of a company are free to trade and do other related activities. But they can not deliberately go against the wishes and benefit of their investors. This comes at a huge price to the investors.

These securities violations can get your business in real trouble, so, choose to keep away from them for a smooth business experience.