Definition - What does Securities Fraud mean?
Securities fraud is the crime of deceiving investors or otherwise using false or inside information to impact the buying and selling of securities. Securities fraud can be committed by an individual, a company, a firm, or even a large investment bank. Securities fraud is considered a white collar crime, however, it is still taken very seriously due to the large sums of money that can be involved.
Justipedia explains Securities Fraud
Many investors rely on information from their stockbroker, from investment banks, hedge funds, or other financial institutions to help them make decisions about which stocks to buy. Where things can go wrong is if false or unlawful information is being provided to induce buying or selling. This would constitute fraud. Insider trading is also considered securities fraud because it provides one with an unfair competitive advantage in the securities markets. Significant jail time can be given to those found guilty of securities fraud.