What are signs of securities fraud?

What are signs of securities fraud?

by | Jan 4, 2020 | Uncategorized

Florida business owners and investors may run into fraud during your career. It can be difficult to pinpoint instances of fraud due to the fluctuations of the market. Still, there are some surefire signs to keep your eyes peeled for if you have concerns that you are a fraud victim.

Many instances of suspicious behavior originate from the broker. Do they not return your phone calls? Are the investments they recommend facing a decline in value? Do they refuse to give you crucial information about investment purchases? If they have a special interest in high risk or speculative investments, that may also be a sign of fraud. Finally, keep a close eye on the advice they give. Fraudulent brokers may suggest you treat market news as “entertainment”.

Keep a close eye on your finances, too. If you are dealing with fraud, transactions on your statements may not make sense. They might include transactions that you do not recall authorizing. You may discover debits or credits that you cannot identify. The stock market itself may also offer clues. Be wary if it is an “up” market and you are still losing money despite that. Beware of dramatic drops in stock value over short periods of time as well. Finally, keep an eye on the difference between public expectations and your personal financial results.

Are you interested in reading more about securities laws and regulations? This complex field can offer interesting points of study. To continue, take a look at our linked web page on securities law. You can learn about other areas related to securities besides signs of fraud.