Situations That Require The Help Of A Securities Attorney

Everyone that buys or trades stocks, bonds, or mutual funds understands they may lose some or all of the money they invest. However, that doesn't mean they should always accept the loss as something that could not have been avoided. Unfortunately, sometimes the loss was due to an unscrupulous act by a broker, financial advisor, corporation, or a private investor. While you shouldn't hire a securities lawyer to look for fraud anytime you lose some money, here are a few times investment problems that should be investigated further.


If the company you invested in suddenly filed bankruptcy, there could have been some misrepresentation going on. The securities commission may have noticed and been investigating the situation. You will want to have a securities attorney looking into things and making sure that if they find that the books had been altered to make the company look better than it was financially that you are named on any lawsuits brought against them.

False Information

There have been brokers and advisors who committed fraud by buying a lot of stock in a small company and recommending it to their clients. As more people rush to buy, the price per share increases. Once the price gets high enough, the brokers and advisors dump their shares causing the price to plummet. If you have bought stock on a professional's advice to have the price drop significantly, you may want to have a lawyer look into the details.

Inside Information

Anytime someone has access to financial information about a company and uses this information to buy or sell its stock, they are committing fraud. Inside information is not allowed to be used to encourage others to trade the stock either. This means that even if the stock went up in value and you were able to make money on it, the securities commission could file a lawsuit that will end up with you losing money in the long run. If you are worried or have been informed that insider trading was going on, you should contact a lawyer to represent you so your loss will be minimum.

The stock market can be confusing. You may luck out and earn a lot of money, or you could lose everything. Unless you have a lot of experience or knowledge, it is best to have the help of some type of financial professional. Of course, it is also a good idea to meet with a securities lawyer to get some understanding on more types of fraud and how to avoid them. Visit a site like for more help.