Securities and the Securities Lawyer

2007-03-08 10:33:40

( Legal )



Securities in General
A security is an interest representing financial value and rights. By interest, we mean title or ownership of the financial value; this ownership can be sold to others. A security is intangible, but is often represented by a certificate.

Why do People Buy Securities?
The main reasons people buy securities are to profit from investment, and to own part of a company in order to control it.

What are the Main Types of Securities?
There are two major types of securities: Debt and Equity. A debt security evidences that money has been borrowed, and it will be paid back with interest over a set time. Some examples are bonds, commercial papers, and treasury bills.
An equity security represents ownership in a part of a corporation or a fund, and whose financial returns to the owner depend on the performance of that corporation or fund.

Securities Law and Securities Lawyers
Securities are governed by the commercial laws of the home country. These laws usually pertain to the formation of corporations, the regulation of stocks and bonds, and other investments. Securities law is a specific field in commercial law that deals with the activities arising out of creation, ownership and transfer of securities. Securities lawyers, also called securities attorneys, are basically lawyers who are experts in this field.

Letting the Securities Lawyer Sift Through the Mess
A securities lawyer is extremely useful because securities are governed by an eclectic set of laws. They all have to do with money, but are not easy to read. They contain many concepts that people do not intuitively understand.

The Securities Fraud Lawyer
Sometimes, the public is fooled by securities sold fraudulently. This usually happens when their fair value is concealed. There are also times when securities are issued illegally, as when there is not enough capital to support the offer to the public of stocks. When this happens, you can hire a securities fraud lawyer to sue the responsible individuals. Such a lawyer is an expert in prosecuting violations of securities laws.

Are Securities Attorneys the Same as Social Security Lawyers?
A securities lawyer is completely different from a social security lawyer. Social security is a field of social welfare, and does not pertain to the concept of securities discussed here.


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