HOME A Word of Advice	The securities fraud The securities fraud is an act committed by an entity intending to manipulate the market through deliberate concealment, or distortion of information. The SEC (Securities and Exchange Commission) acts to regulate against securities fraud by enforcing investment acts and laws. The securities fraud may be committed by: Brokers-dealers (misleading clients or advising based on inside information) Financial advisors or analysts (purposefully offering poor advice or inside information) Corporations (hiding or distorting information) Private investors (acting on inside information) The most famous recent examples of securities fraud include the cases of Martha Stewart and Enron.  It is indeed mind boggling when you realize that Stewart, arguably the most successful American businesswoman, chose to sell her shares in ImClone to save much less than $100,000! Compare this to hundreds of millions her personal wealth is valued at and you understand how treacherous greed can be. The Enron scandal was much more serious, being called "the most important corporate scandal of our lifetimes" by a securities law historian Joel S. Seligman. It unfolded about the same time as Stewart's and resulted in major changes to the securities law.
	Disclaimer: HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS UNLIKE AN ACTUAL PERFORMANCE RECORD. SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.