“Securities” is a term that refers to assets of any kind that can be traded. This word typically refers to stocks, but it can refer to other types of assets and investments as well. The main categories for securities include:
- Debt-based securities such as bonds and bank notes
- Equity-based securities (i.e., common stock)
- Derivative contract securities (i.e., futures, options, etc.)
Thus, securities law encompasses a wide range of different assets, which can be owned by individuals, as well as businesses. Securities law is often included under the broader category of “finance law,” which deals with assets, loans and other valuables of all kinds.
What Are Securities Violations?
Securities are very highly regulated due to the fact that they are often very high in value, monetarily speaking. Securities laws regulate such violations as:
- Insider trading and other stocks violations
- Securities fraud
- Loan fraud
- Business non-compliance violations
- Tax-related violations
Securities violations can also overlap with other areas of law. These include tax laws, property laws, and white-collar crime laws.
What Are Some Penalties for Security or Finance Violations?
Securities violations can often result in very heavy legal penalties. Many securities and finance violations can result in federal charges, which are associated with strict penalties. Penalties can include:
- Misdemeanor or felony charges
- Civil and criminal fines
- Jail or prison sentences
- Business penalties, such as a suspension of operating license, or a loss of broker certification, etc.
Securities violations can sometimes result in class action lawsuits. An example of this is where a company’s fraudulent issuing of stock affects a whole group of stockholders. These types of lawsuits can take several years to complete and can involve a substantial amount of money.
Do I Need a Lawyer for Help with Security Finance Laws?
Securities regulations typically involve laws and statues which are fairly complex and difficult to understand. You may need to hire a business lawyer if you need assistance with security laws. Your attorney can provide you with legal advice, guidance, and representation for your legal claim. Also, if you need help with state or federal issues, a qualified lawyer in your area can help research the laws that may apply to your claim.