What are the common causes of action in securities fraud cases?

In California, securities fraud law covers a wide range of past actions that aim to manipulate or misinform consumers of financial products. Common causes of action in securities fraud cases include misrepresentation, nondisclosure, and other deceptive practices related to the sale of securities. Misrepresentation is when a party makes false statements or omits information deliberately in order to convince someone to buy or sell a security. For example, if a broker says that a stock is a sure thing when they know it’s a risky investment, they have committed misrepresentation. Nondisclosure occurs when a party fails to disclose important facts about a security. For example, if a broker fails to tell a customer about the risks associated with a stock, they have committed nondisclosure. Other deceptive practices related to the sale of securities include front running and insider trading. Front running is when a broker trades ahead of their customer, taking advantage of information that their customer has yet to receive. Insider trading is when a broker trades on privileged information that is not available to the public. In California, any of these actions can be considered securities fraud, and all can be prosecuted. Fraud involving securities is a serious crime, and it’s important to seek qualified legal services if you believe you have been a victim.

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What are the common causes of action in securities fraud cases?

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