What are the different types of securities fraud?

Securities fraud, also known as investment fraud, is a crime that occurs when an individual or organization deceives investors by misrepresenting, omitting, or manipulating investment information in order to benefit from the resulting financial gain. In the state of Washington, securities fraud is a felony punishable by jail time. One type of securities fraud involves insider trading, which occurs when a person trades a security based on material, nonpublic information. This type of fraud is illegal because it gives the trader an unfair advantage over other investors. Another type of securities fraud is misrepresentation or omissions of material facts about the security. This type of fraud involves a false or misleading statement or omission of important information that affects the investment decisions of investors. A third type of securities fraud is market manipulation. This type of fraud occurs when an individual or organization artificially inflates or deflates the price of a security in order to benefit from the resulting action. Lastly, a fourth type of securities fraud is the sale of unregistered securities. This type of fraud occurs when an individual or organization sells securities that are not properly registered with the appropriate regulatory body. This type of securities fraud can be especially dangerous because the seller may not have the required licenses or expertise to handle the transaction. Regardless of the type of securities fraud, it is important for investors to be aware of the red flags associated with each type of fraud. By being informed, investors are better able to protect themselves from becoming victims of securities fraud.

What are the different types of securities fraud?

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