It isn't easy running a startup organization in the tech industry these days -- and the Securities and Exchange Commission (SEC) isn't about to make it any easier.
Do you feel like the broker-dealer firm you signed on with courted you with false promises? Do you feel misused by a company that you thought really valued you -- enough that they even gave you a sign-on bonus?
When you decide to invest your money, it is always a risk. Anyone who tells you otherwise is probably running some sort of scam or trying to build up a false confidence. The risk may be low, but it is always there.
When you suffer losses in your investment portfolio that you believe goes beyond the typical actions of the market, you could have some legal recourse. There are several factors that could have contributed to your losses for which you can seek relief.
In early June, the Canadian social media giant Kik began seeking funding to fight the U.S. Securities and Exchange Commission (SEC). They estimated that it would cost 5 million to do so.
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.
Initial public offerings (IPOs) can be tricky things. Calculating the value of a stock before it becomes available to the public for purchase isn't an exact science. Uber's IPO earlier this month was widely considered to be a "flop" as it quickly dropped below its IPO price -- although it has since rebounded somewhat.
There are plenty of do-it-yourself options out there for people who want to buy stocks and other types of securities. However, many investors turn to brokers for their experience and knowledge. Brokers, like other types of professionals, owe a duty of care to their clients. They are governed by the Financial Industry Regulatory Authority (FINRA).
A bribery scandal involving Mobile TeleSystems apparently cost them around $850 million dollars already, and now the company is facing a class-action lawsuit for not making proper statements regarding that scandal.
The Securities and Exchange Commission (SEC) leveled sanctions when an investment banker allegedly misled investors, making them think that a startup company was in a far better financial position than it really was. The case ended up before the U.S. Supreme Court, which backed the SEC by upholding those sanctions.