What are the strategies used to combat securities fraud?

One of the primary strategies used to combat securities fraud in Utah, and across the U.S., is the passage and enforcement of strong securities laws. These laws, often known as Anti-Fraud provisions, are designed to protect investors from being misled or taken advantage of by unscrupulous practitioners. Additionally, these laws establish registration requirements for securities brokers and dealers. This helps to ensure that individuals who are registered to buy or sell securities are properly qualified and have a valid license. Another strategy used to combat securities fraud is the establishment of the Securities and Exchange Commission. This federal agency is responsible for administering and enforcing securities laws in the U.S., including those in Utah. The SEC maintains a strict system of audits and inspections of the activities of securities professionals. It can also impose penalties on those it finds to be in violation of securities laws. Finally, the Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that works to ensure firms and individuals comply with industry regulations. FINRA also provides a complaint and arbitration system, which allows individuals to register complaints about security-related practices. This helps FINRA to identify and investigate potential securities fraud. In summary, the strategies used to combat securities fraud in Utah and the U.S. include the passage and enforcement of strong securities laws, the establishment of the Securities and Exchange Commission, and the oversight of FINRA. All of these programs are designed to reduce the risk of securities fraud and help protect individual investors.

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What are the strategies used to combat securities fraud?

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