Securities Fraud and White-Collar Crime

Securities fraud is a type of white-collar crime involving deceit related to financial investments, such as stocks and bonds. It occurs when individuals or companies manipulate information to mislead investors, often to inflate stock prices or hide losses. Common examples include insider trading, where someone uses confidential information to trade before the public knows, and Ponzi schemes, which pay returns to earlier investors using new investors' money. Essentially, securities fraud undermines fair trading and can lead to significant financial harm for investors and the economy. Regulatory agencies enforce laws to protect investors and maintain market integrity.