What Do Securities Lawyers Handle in Their Profession?

Investors and consumers are increasingly interested in securities and securities laws. However, the definition of securities differs from one country to another. In the U.S., the Securities Exchange Act of 1934 defines elaborately what securities mean, which can be summarized as any tradable financial assets.

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Other countries may have more specific definitions. Below are the three most popular categories of securities.

  • One equity security, such as stocks
  • Debt securities such as bonds
  • Derivatives such as futures and options

Some incidences, such as fraud and deceptive accounting to overvalue companies, have made the government more interested in how financial assets are traded. This is where securities lawyers come in handy. Securities lawyers ensure a company offering products meets legal obligations such as disclosing necessary information such as risk. In addition, they are skilled in doing financial history research of a company and advising investors on suitable products. Thus, the lawyers act as informed advisors to ensure you have all the essential information before investing.

A securities lawyer will guide clients on their legal options in case litigation arising from securities investment, mainly because arbitration clauses limit potential legal action. In essence, securities lawyers are trained to protect your investments by doing due diligence.


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