What is securities fraud?

Securities fraud, also known as investment fraud, is a type of white collar crime in Virginia. It involves the intentional misrepresentation of financial information or other data in order to induce someone to invest or trade in securities. When securities fraud occurs, investors may lose money or property due to the false or misleading information given to them. The most common type of securities fraud is insider trading, which is the unlawful purchase or sale of stocks by someone who has access to nonpublic information. For example, if an executive in a company knows that their company will soon release bad news, they might sell their stocks before the news is made public. This would be considered illegal insider trading. Another type of securities fraud is stock manipulation. This is a tactic used by individuals to artificially inflate or deflate the price of a stock. This can be done through false or misleading statements about a company or its stock, or by generating false demand for a security by rapidly buying and selling the stock. Overall, securities fraud is a serious crime in Virginia that can lead to severe financial losses. If you are accused of securities fraud, it is important to speak to an experienced attorney who can help you understand the potential consequences and your legal rights.

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What is securities fraud?

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