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Securities law in New York governs financial instruments such as stocks, bonds, and mutual funds. The purpose is to promote transparency, fairness, and market stability while protecting investors from fraud and other malpractices. New York is a key financial hub and home to major financial markets like the New York Stock Exchange (NYSE) and NASDAQ. The state adheres to both federal and state regulations, making it a complex environment where legal advice is often crucial.
You may need a securities lawyer for various reasons including:
In New York, securities law is enforced at both the state and federal levels. Key federal regulations include the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Company Act of 1940. New York also has its own Martin Act, a unique piece of legislation that gives the New York Attorney General expansive powers to combat financial fraud. This act does not require proof of intent to defraud, making it a potent tool against misconduct in securities.
The Martin Act, unique to New York, gives the Attorney General broad powers to investigate and prosecute securities fraud without needing to prove fraudulent intent.
Fraud in the securities market typically involves deceptive practices affecting investors. It may include misrepresentation of information, fraudulent investment schemes, or insider trading.
You can file a claim against a broker if their advice violated fiduciary duty or involved fraud, negligence, or misconduct. A lawyer can help determine the viability of your claim.
The primary regulators are the Securities and Exchange Commission (SEC) at the federal level and the Office of the Attorney General in New York under the Martin Act.
Insider trading occurs when someone buys or sells stocks based on non-public, material information. Both federal and state laws consider it illegal and punishable by fines and imprisonment.
Gather as much information as possible and consult with a securities lawyer who can advise you on reporting the fraud to regulators or pursuing legal action.
Disputes in securities transactions may be settled through arbitration, often mandated by brokerage agreements. The Financial Industry Regulatory Authority (FINRA) administers such arbitration processes.
Hedge funds in New York must comply with both state and federal securities laws, which include registration, disclosure, and anti-fraud provisions.
IPOs are regulated under the Securities Act of 1933, requiring companies to file registration statements and provide essential information to investors, subject to SEC review.
Penalties can range from fines, disgorgement of profits, and reputational damage to imprisonment for severe violations like fraud or insider trading.
Here are some resources for further assistance or guidance in securities matters:
If you need legal assistance in securities, consider the following steps:
Hiring a knowledgeable lawyer could be crucial in safeguarding your interests in the complex field of securities law.
