Chapter 8
Studying Securities Fraud
In This Chapter
Using financial statements to boost stock prices
Identifying common frauds perpetrated by financial advisors
Protecting your clients from fraud
The securities markets are places where a lot of money changes hands very quickly. The New York Stock Exchange, one of the world’s largest exchanges, reported that in 2009 it managed 1,331,995 transactions for 16,126,680,649 shares at a value of $11,488,719,043. That’s an awfully big amount of money and trades. We’ve all heard of people getting rich in the markets. Some of the stories are real and some not. A lot of people believe the stories they hear and think they, too, can become rich by “playing” the markets.
Because of the large amounts of money being moved around and so many people wanting to become rich easily, the securities markets have become fertile grounds for fraudsters. The fraudsters come from all ends of the industry: listed companies, analysts, brokers, investors . . .
In this chapter, we tell you about some of the most common security frauds and discuss methods of uncovering them. We also explain how you can talk to your clients about not becoming victims.
Falsifying ...
