Securities Law
The term "security" means any note, stock,
treasury stock, bond, debenture, evidence of indebtedness, certificate
of interest or participation in any profit-sharing agreement,
collateral-trust certificate, preorganization certificate or
subscription, transferable share, investment contract, voting-trust
certificate, certificate of deposit for a security, fractional
undivided interest in oil, gas, or other mineral rights, any put, call,
straddle, option, or privilege on any security, certificate of deposit,
or group or index of securities (including any interest therein or
based on the value thereof), or any put, call, straddle, option, or
privilege entered into on a national securities exchange relating to
foreign currency, or, in general, any interest or instrument commonly
known as a "security", or any certificate of interest or participation
in, temporary or interim certificate for, receipt for, guarantee of, or
warrant or right to subscribe to or purchase, any of the foregoing.
Securities lawyers are involved with bonds and stocks issued by
corporations and governments as proof of ownership for a final payoff.
These bonds are called securitites as they are proof of eventual
payment from corporations or government that they have been purchased
from. Securitiesare only good as long as the corporation or government
are functional. Familliarity with state and federal laws is necessary
because securities are regulated by both.
Securities litigation lawyers go to court on matter of stockbroker and
investment fraud. Stockbrokers who advise clients to invest in dubious
sticks can br brought to court for unsuitable accounts and "churning",
which is the buying and selling in excessive amounts by a broker given
control of an account. Stockbrokers engage in this activity without
permission of their client and "churn" to get more commissions.
Upon investing it is recommended that persons retain the services of a
securities lawyer to advise them of laws, regulations and some tips to
avoid the would-be dangers of dubious stockbrokers.
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