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Breaking Down the Different Types of Stock Fraud

Many people take a chance with their money and feel like investing in stocks is a good way to multiply their savings. Investing can be tricky to maneuver, however, and stocks can plummet losing you thousands of dollars, which is why you should rely on a stock broker to help you understand how to invest wisely. Unfortunately, there are stock brokers that are devious and unethical and sometimes stock fraud takes place. If that happens to you, you should enlist the help of a Fort Lauderdale stock fraud lawyer right away. A Florida fraud attorney can try and help you get your money back so you can have the safety of your savings account again.

What is Stock Fraud?

Stock fraud is also known as securities fraud and investment fraud. It is the illegal and dishonest practice in the stock market that prompts investors to purchase or sell stocks on the basis of false information, frequently resulting in losses. These purchases and sales are usually in violation of security laws. Stock fraud can also be the theft of money from stockbroker’s clients, otherwise known as embezzlement. Stock brokers can also illegally participate in stock manipulation, giving incorrect statements on a company’s financial reports, and lying to auditors.

These are the most typical types of fraud:

  • Corporate fraud
  • Corporate misconduct
  • Dummy corporations
  • Internet fraud
  • Insider trading
  • Microcap fraud
  • Accountant fraud
  • Boiler rooms
  • Mutual Fund fraud
  • Short selling abuses
  • Ponzi schemes

With so many ways for fraud to happen when you invest in stocks, you must stay diligent and aware as to what is happening with your money. If you discover that you have been the target of stock fraud, you should contact a Fort Lauderdale stock fraud lawyer immediately. You don’t want to lose that hard earned money because some deceitful stock broker has stolen it and is using it for their personal gain.

By contacting a Florida fraud attorney you are taking the first steps to forcing the wrongful party to attend court and finding a way to reclaim the money that is rightfully yours.

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