Consumers are nowadays more interested in protecting their investments, given the rise in financial scandals, which often affect the economy. This they can do safely via a Securities Lawyer, who is great at representing investors and companies.
Securities laws are the laws and regulations that govern financial instruments like stocks, bonds and mutual funds.
These rules and regulations are meant to prevent cases of fraud, insider training, as well as market manipulation while promoting transparency via a system of enforcement and reporting.
Securities law has three known branches, regulatory work, litigation and transaction work.
Securities lawyers that do regulatory work may help you with issues involving Securities and Exchange Commission, SEC as well as those involving the New York Exchange, the National Association of Securities Dealers among other laws that often protect your interests as an investor.
Those that deal with litigation, tend to handle cases involving criminal and civil lawsuits, as well as enforcement actions.
The transaction work securities attorney are best at handling all legal issues involving merges and acquisitions, mutual funds as well as initial public offerings, IPOs.
Benefits of a securities lawyer
Help protect your investments
A securities lawyer will help you protect your investments by helping you research the financial history as well as the health of companies you want to invest in, based on their reporting.
Help prevent fraud
Securities lawyers can advise you on some of the common signs of securities fraud or mismanagement of your investments as well as what to be cautious about while investing.
Better legal understanding
They can also advise you on the legal obligation owed to you by a broker, like:
- A duty to determine if the recommended product is suitable for you, specifically
- A duty to place your interests above their own, fiduciary duty
- A duty to disclose all the necessary information about any commended investments.
Advise on claims
A securities lawyer can advise you on the various types of claims availed to investors, especially those who suffer losses not attributed to normal market forces like conflict of interest, breach of fiduciary duty, failure to supervise as well as failure to diversify and omission of facts.
Other claims they can advise you on include trading without permission, unsuitability, churning, insider information, market manipulation, misrepresentation as well as risky investments and malpractice or ineptitude.
Represent you in litigation
They will represent you in litigation arising from your investments like a class suit action, shareholder’s derivative action as well as a suit against your broker.
Help you better understand the agreeement
This type of lawyer can review and explain a broker agreement to you, before you sign it. So, it would be wise to consult them before investing in any securities. Besides, most broker agreement tends to have arbitration clause, which can make it hard for you to purse a court action against them, without a securities lawyer.
Assist in corporate matters
These lawyers are great at representing corporates in transactional work that can involve initial public offerings (IPOs), private sales of securities, merges and acquisitions as well as issuance of stock or other securities.
They are also resourceful when it comes to assisting different companies comply with securities laws and regulations, which at the end of the day benefits the consumers.
How to find securities lawyer
Get some referrals from people you know
Ask for some referrals from other lawyers you know, family, friends and colleagues. However, remember that they are just recommendations to get you started, so proceed with caution and do your research before you hire one for your legal paperwork.
Call on several bar associations
You can also find a securities lawyer within your locale, by calling several bar association for some local referrals. You can peruse the list and look for some reputable ones, before calling on them one by one. Some might offer to consult with you free or at a small fee.
Consult directories of attorneys
Broaden your search list by consulting different law directories. There are so many online. Some will list attorneys by state, jurisdiction and even specialty. So, do your homework and avoid impulse hiring.
In matters of law, you need to be well informed of what you are about to do or involve yourself in. For this reason, always make it a habit to do your research and talk to people who are informed in such matters. Otherwise, you will end up risking a lot, most of which you will have no clue to their meaning.
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