{"id":3145,"date":"2023-04-28T08:13:06","date_gmt":"2023-04-28T08:13:06","guid":{"rendered":"https:\/\/nixlaw.com\/?post_type=news&#038;p=3145"},"modified":"2025-08-13T07:56:03","modified_gmt":"2025-08-13T07:56:03","slug":"what-is-securities-law","status":"publish","type":"news","link":"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/","title":{"rendered":"What Is Securities Law?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Recent financial scandals, including Enron, MF Global, and <a href=\"https:\/\/www.investopedia.com\/terms\/b\/bernard-madoff.asp\" target=\"_blank\" rel=\"noreferrer noopener\">Bernie Madoff\u2019s Ponzi scheme<\/a>, have led to heightened public interest in securities law. Despite the notoriety of these high-profile cases, individuals and corporations do benefit from these regulations, which help increase confidence while investing. Of course, all investments have risks, but securities law is designed to protect investors\u2019 money when it matters most.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#What_Is_Securities_Law\" >What Is Securities Law?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#What_Securities_Laws_Require\" >What Securities Laws Require<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#How_a_Securities_Law_Attorney_Can_Help\" >How a Securities Law Attorney Can Help<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#How_Do_You_Know_if_You_Have_a_Securities_Case\" >How Do You Know if You Have a Securities Case?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#Contact_the_Nix_Patterson_Securities_Law_Attorneys\" >Contact the Nix Patterson Securities Law Attorneys<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important to have an understanding of securities law before investing in the markets, but if you have questions about complex state and federal securities laws or a securities-related legal issue, the experienced securities law attorneys at Nix Patterson can review your case.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Securities_Law\"><\/span><a><\/a>What Is Securities Law?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Securities are purchased and sold by investors, companies, and governments as a means to invest their money. Many different entities are involved in securities, so numerous laws exist to protect investors and markets. That said, securities laws and regulations focus on three areas:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Federal laws mandating that companies selling securities report their assets, liabilities, and other vital accounting information transparently and regularly<\/li>\n\n\n\n<li>Federal laws intended to prevent buyers from gaming the system through <a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec\/laws-govern-securities-industry#:~:text=The%20securities%20laws%20broadly%20prohibit,actions%20against%20fraudulent%20insider%20trading.\" target=\"_blank\" rel=\"noreferrer noopener\">insider trading<\/a> and secret market information<\/li>\n\n\n\n<li>Federal laws regulating what brokers can and cannot do for investors<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These critical federal securities laws were enacted after many unregulated activities in the early 20th century led to the infamous 1929 market crash and the Great Depression. In addition, the federal government created the <a href=\"https:\/\/www.sec.gov\/about\/about-securities-laws\" target=\"_blank\" rel=\"noreferrer noopener\">Securities and Exchange Commission (SEC)<\/a> to administer federal securities laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Securities_Laws_Require\"><\/span><a><\/a>What Securities Laws Require<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Congress passed the Securities Act of 1933 to ensure investors have critical financial and other information about investments in public markets. The Act also bans using deceit, fraud, and misrepresentation when securities are sold. In addition, companies must follow the Securities Act and other federal laws that were passed in the following years and decades. Requirements include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Public disclosure.<\/strong> Publicly traded companies must file financial reports with the Securities and Exchange Commission. The reports must provide vital financial information, including investment results, executive compensation, and financial strength. Individuals, stockbrokers, and markets use SEC disclosures to make investing decisions. When the SEC believes the company has made sufficient financial disclosures, the security may be registered, and sales commence.<\/li>\n\n\n\n<li><strong>Registration with the SEC.<\/strong> Securities law also states that publicly traded firms must register with the commission and offer disclosures about the investments they offer.<\/li>\n\n\n\n<li><strong>Paying compensation for not complying with securities law. <\/strong>If an organization does not adhere to securities law, the wronged investor can get their money back, plus damages. In addition, in some cases, the company provides a rescission (securities buyback, with interest) to investors who purchased securities that violated the law.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Other securities laws passed include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Securities Exchange Act of 1934<\/li>\n\n\n\n<li>Trust Indenture Act of 1939<\/li>\n\n\n\n<li>Investment Company Act of 1940<\/li>\n\n\n\n<li>Investment Advisers Act of 1940<\/li>\n\n\n\n<li>Sarbanes-Oxley Act of 2002<\/li>\n\n\n\n<li>Dodd-Frank Act of 2010<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_a_Securities_Law_Attorney_Can_Help\"><\/span><a><\/a>How a Securities Law Attorney Can Help<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A securities law attorney may have a vital role in safeguarding your investments. As you make investment plans, your attorney can help you research a company\u2019s finances, history, and health based on its SEC reports. The attorney also can advise regarding the broker\u2019s requirement to inform if an investment is a good fit for you and their fiduciary duty to you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A securities law attorney can also point out possible signs of financial mismanagement or investment fraud. Legal counsel may also recommend options if you suffer losses outside the norm. These options include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Conflict of interest<\/li>\n\n\n\n<li>Excessive trading to boost broker commissions (churning)<\/li>\n\n\n\n<li>Failure to supervise<\/li>\n\n\n\n<li>Failure to diversify<\/li>\n\n\n\n<li>Manipulating markets<\/li>\n\n\n\n<li>Insider information<\/li>\n\n\n\n<li>Investment unsuitability<\/li>\n\n\n\n<li>Unauthorized trading<\/li>\n\n\n\n<li>Omission of facts<\/li>\n\n\n\n<li>Misrepresentation<\/li>\n\n\n\n<li>Malpractice or ineptitude<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Your securities lawyer also may represent you in any legal action that stems from your investments in publicly traded securities, such as a class action lawsuit, a shareholder\u2019s derivative action, or a lawsuit against the stockbroker. However, many stock broker agreements have an arbitration clause that limits legal action against the broker. That\u2019s why you should have your securities attorney review the contract before you sign.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_You_Know_if_You_Have_a_Securities_Case\"><\/span><a><\/a>How Do You Know if You Have a Securities Case?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investors often are unaware anything has been done wrong with their accounts; account statements are often long and confusing. So, many investors may only know the securities they invested in were unsuitable once they see the steep losses in their accounts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you raise questions, the brokerage may insist their broker didn\u2019t do anything wrong with the hope that you will back off. However, a skilled securities law attorney can get around this tactic, and <a href=\"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/\">the securities litigation lawyers at Nix Patterson<\/a> have a successful record of settlements and awards for wronged investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our attorney can help to determine if the brokerage did not supervise the stock broker and whether you suffered financial damages. We also can evaluate if the brokerage did its due diligence before approving a security for sale to the public.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contact_the_Nix_Patterson_Securities_Law_Attorneys\"><\/span><a><\/a>Contact the Nix Patterson Securities Law Attorneys<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have questions about securities and investments you are considering, please <a href=\"https:\/\/nixlaw.com\/contact\/\">contact Nix Patterson<\/a> today. Our attorneys are paid a percentage of the client\u2019s settlement or award and never collect unless we win the case.<\/p>\n","protected":false},"featured_media":3146,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false},"categories":[67],"tags":[],"news_attorney_categories":[],"news_categories":[],"news_practice_areas":[304],"news_years":[],"class_list":["post-3145","news","type-news","status-publish","has-post-thumbnail","hentry","category-featured-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Securities Law | Nix Patterson LLP<\/title>\n<meta name=\"description\" content=\"Have you suffered excessive losses in securities? Find out about securities law and what a securities attorney can do for you.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Securities Law | Nix Patterson LLP\" \/>\n<meta property=\"og:description\" content=\"Have you suffered excessive losses in securities? Find out about securities law and what a securities attorney can do for you.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/\" \/>\n<meta property=\"og:site_name\" content=\"Nix Patterson, LLP\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Nix-Patterson-Roach-LLP-560328770976672\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-13T07:56:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nixlaw.com\/wp-content\/uploads\/2023\/04\/What-Is-Securities-Law.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Tiempo de lectura\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutos\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is Securities Law | Nix Patterson LLP","description":"Have you suffered excessive losses in securities? Find out about securities law and what a securities attorney can do for you.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/","og_locale":"es_ES","og_type":"article","og_title":"What Is Securities Law | Nix Patterson LLP","og_description":"Have you suffered excessive losses in securities? Find out about securities law and what a securities attorney can do for you.","og_url":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/","og_site_name":"Nix Patterson, LLP","article_publisher":"https:\/\/www.facebook.com\/Nix-Patterson-Roach-LLP-560328770976672\/","article_modified_time":"2025-08-13T07:56:03+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/nixlaw.com\/wp-content\/uploads\/2023\/04\/What-Is-Securities-Law.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Tiempo de lectura":"4 minutos"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/","url":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/","name":"What Is Securities Law | Nix Patterson LLP","isPartOf":{"@id":"https:\/\/nixlaw.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#primaryimage"},"image":{"@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#primaryimage"},"thumbnailUrl":"https:\/\/nixlaw.com\/wp-content\/uploads\/2023\/04\/What-Is-Securities-Law.jpg","datePublished":"2023-04-28T08:13:06+00:00","dateModified":"2025-08-13T07:56:03+00:00","description":"Have you suffered excessive losses in securities? Find out about securities law and what a securities attorney can do for you.","breadcrumb":{"@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#breadcrumb"},"inLanguage":"es","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/"]}]},{"@type":"ImageObject","inLanguage":"es","@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#primaryimage","url":"https:\/\/nixlaw.com\/wp-content\/uploads\/2023\/04\/What-Is-Securities-Law.jpg","contentUrl":"https:\/\/nixlaw.com\/wp-content\/uploads\/2023\/04\/What-Is-Securities-Law.jpg","width":1920,"height":1280,"caption":"What Is Securities Law"},{"@type":"BreadcrumbList","@id":"https:\/\/nixlaw.com\/practice-areas\/securities-litigation-portfolio-monitoring\/what-is-securities-law\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Nix Patterson, LLP","item":"https:\/\/nixlaw.com\/es\/"},{"@type":"ListItem","position":2,"name":"What Is Securities Law?"}]},{"@type":"WebSite","@id":"https:\/\/nixlaw.com\/#website","url":"https:\/\/nixlaw.com\/","name":"Nix Patterson, LLP","description":"A national contingency fee law firm providing litigation strategies and solutions","publisher":{"@id":"https:\/\/nixlaw.com\/#organization"},"alternateName":"Nix Law","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nixlaw.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"es"},{"@type":"Organization","@id":"https:\/\/nixlaw.com\/#organization","name":"Nix Patterson, LLP","url":"https:\/\/nixlaw.com\/","logo":{"@type":"ImageObject","inLanguage":"es","@id":"https:\/\/nixlaw.com\/#\/schema\/logo\/image\/","url":"https:\/\/nixlaw.com\/wp-content\/uploads\/2022\/12\/cropped-nix-logo-vector-logo-tag.webp","contentUrl":"https:\/\/nixlaw.com\/wp-content\/uploads\/2022\/12\/cropped-nix-logo-vector-logo-tag.webp","width":1198,"height":272,"caption":"Nix Patterson, LLP"},"image":{"@id":"https:\/\/nixlaw.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Nix-Patterson-Roach-LLP-560328770976672\/","https:\/\/www.linkedin.com\/company\/11394755\/"]}]}},"_links":{"self":[{"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news\/3145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/media\/3146"}],"wp:attachment":[{"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/media?parent=3145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/categories?post=3145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/tags?post=3145"},{"taxonomy":"news_attorney_categories","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news_attorney_categories?post=3145"},{"taxonomy":"news_categories","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news_categories?post=3145"},{"taxonomy":"news_practice_areas","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news_practice_areas?post=3145"},{"taxonomy":"news_years","embeddable":true,"href":"https:\/\/nixlaw.com\/es\/wp-json\/wp\/v2\/news_years?post=3145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}