How can I tell if I`ve been a victim of a stock fraud?
By: LawInfo
Every case is different but when a stock has dropped, your loss may be due to fraud when Company executives misrepresented facts relating to important aspects of the business, or held off revealing bad news that should have been disclosed earlier. The company or its accountants restate financial results to reflect the true state of the company`s financial affairs. The stock drops rapidly on a disclosure of wrongdoing by the company or its executives or employees. Before bad news is revealed, insiders engage in insider trading by selling their shares at inflated prices. Many other scenarios may be reflective of fraud. If you are unsure of your rights, you may wish to consult an attorney.
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Additional Civil Stock Broker Fraud FAQs
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