Securities fraud
Deceptive practice in the stock or commodities markets / From Wikipedia, the free encyclopedia
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Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information.[1] [failed verification][2][3] The setups are generally made to result in monetary gain for the deceivers, and generally result in unfair monetary losses for the investors.[4] They are generally violating securities laws.
Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company's financial reports, and lying to corporate auditors. The term encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.[5][6][7]