Investing nearly always carries some risk. However, there are numerous state and federal securities laws that publicly traded companies and securities professionals must abide by. These help prevent investors from putting themselves at unnecessary risk due to false or incomplete information provided by companies or from less-than-honest brokers and other securities professionals.
Securities laws are in place to guard against insider trading, fraud and market manipulation. They bring needed transparency in reporting. For example, publicly traded companies are required to file reports on a regular basis with the Securities and Exchange Commission (SEC) regarding their financial condition as well as things like executive compensation.
Individual investors, as well as investment professionals, have to be able to rely on accurate information. As we saw with the collapse of the energy giant Enron back in 2001, when companies don’t provide accurate information to investors, the financial toll can be catastrophic.
You don’t have to wait until you’ve become the victim of securities fraud or mismanagement to benefit from the advice of a securities attorney. They can help you know what to look for as you research companies as possible investment opportunities.
They can also help you understand what you can and should expect from a broker or other investment advisor and review your agreement with your broker before you sign it. Securities attorneys can also help people spot signs of fraud and mismanagement before it’s too late.
Securities attorneys also help companies remain in compliance with all securities laws. This can help them prevent costly fines, litigation and damage to their reputation.
If you have been the victim of securities fraud or mismanagement, whether you’re an individual, company or part of a class-action suit, an experienced securities attorney can help you seek the justice and compensation you deserve.