Securities Fraud & Securities Trading

Posted on April 4, 2017

For a company like GWC USA Inc, it is important to understand the difference of securities trading and securities fraud. Keeping in mind the types of securities trading which is financial activity that involves transactions of property such as bonds, stocks, commodities and currency. There is new technology in computers and telecommunications, which has brought about a new era in securities trading. Now computerized trading is more common especially for stocks and bonds yet there can be securities fraud that can occur if you aren’t careful enough with your securities trading.

Securities fraud is more involved in the insider-trading scandal and this became a major issue since insider trading or the private trading of securities is usually based on information that is still private and is not intended to be publicized. The stock market meltdown partially occurred due to the number of widely traded financial products relating to securities such as credit default swaps, remaining unregulated, the housing bubble and resulting in credit crunch.

Security is usually known as stock fraud and investment fraud is a deceptive practice that can occur in the stock market that basically induces investors to make sale or purchase decisions on the basic of false information therefore results in violating a company or individuals security laws. This can also be known as stock market manipulation since it is an attempt to interfere with the free and fair trading of stocks and to create artificial and false or even misleading appearances with stock markets. This also ties in with the above information on insider-trading since this is the public trading of a company stocks but instead they access nonpublic information about a company. Most trading based on insider information is illegal and this is a serious violation and there are several consequences for these illegal acts therefore knowing to never share unpublicized information is important.

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