Definition of Securities fraud:
Securities fraud, also referred to as stock or investment fraud, is a type of serious white-collar crime that can be committed in a variety of forms but primarily involves misrepresenting information investors use to make decisions.
Intentional concealment, omission, or perversion of financial information to cheat or take unlawful advantage of investors, in violation of the securities laws.
The perpetrator of the fraud can be an individual, such as a stockbroker. Or, it can be an organization, such as a brokerage firm, corporation, or investment bank. Independent individuals might also commit this type of fraud through schemes such as insider trading.
How to use Securities fraud in a sentence?
- Securities fraud can also include false information, pump-and-dump schemes, or trading on insider information.
- This type of fraud a serious crime usually involving the investment world.
- Examples of securities fraud include Ponzi schemes, pyramid schemes, and late-day trading.
- Securities fraud is illegal or unethical activity carried out involving securities or asset markets in order to profit at the expense of others.
Meaning of Securities fraud & Securities fraud Definition