Securities Attorneys Representing Clients in Florida and Nationwide

Securities are the financial instruments that represent a form of ownership or stake in a company. Securities allow individuals to own asset(s) without taking possession of them. Because of this, securities can be exchanged easily. In addition to this, pricing securities is not difficult which is why they are a strong indicator of the value of the asset. In order to purchase or sell securities, a trader must obtain a license to ensure they have been trained to follow a set of laws established by the SEC (Securities and Exchange Commission). Despite the regulatory agencies and laws in effect, fraud is still widespread. Fraud is an “umbrella term” that encompasses a wide range of deceptive and manipulative practices utilized by perpetrators to profit at the expense of the investor(s).

 

Types of securities:

Bonds, which can be issued by corporations or the government (Federal/Local).

A corporate bond is essentially a loan to a corporate entity in which you receive interest annually until the loan is paid off. Corporate bonds offer stability and are considered safer than stock in a company. Bondholders do not get dividends or voting rights which is why in the long haul, stocks have the potential for larger returns.

A bond issued by the federal government is very low in terms of risk and most frequently issued by the US Treasury. The potential for return is significantly lower than stocks or bonds issued by corporate entities.

A municipal bond is issued by state and local government. These include a city, county, town or school district. Typically,the rate of interest is lower than that of a bond issued by a corporation.

Mutual Funds , which are composed of a variety of securities.

A mutual fund can be stock options, bonds or both. In most cases, the investment is placed in a pool with monies from other investors. The fund is managed by an investment company, who selects the securities. The risk of the investment is reduced due to the diversity of the portfolio.

Stock Options

The right to purchase or sell stock in a company, at a specific rate for a window of time. The right to purchase stock is referred to as a call, the right to sell is called a “put”.

Futures Option

A futures contract is an agreement to sell a certain security in the future for a pre-determined rate. An option is the right to purchase or sell a contract at a certain price for a specified period of time. Since it used to reduce risk, a futures option is utilized by many investors.

 

History of Regulation

The regulation of Securities in the United States dates back to the 1930’s when the New Deal was passed. In the 1930’s & 40’s, five major laws were put into place by the Federal Government.

• Securities Act of 1933 a regulation on the distribution of new securities
• Securities Exchange Act of 1934- regulation of trading securities , brokers & exchanges
• Trust Indenture Act of 1939- regulation of debt securities
• Investment Company Act of 1940- regulating mutual funds
• Investment Advisers Act of 1940- regulation of investment advisers

Since the 1940’s a number of amendments have been made to these regulations in order to promote fair trade and enforce illegitimate/illegal practices. These major laws also serve to protect investors, ensuring they are adequately informed at the time of purchase.

While many measures are in place to reduce risk, it is still inherent, especially when dealing with non-governmental entities. Educating yourself on the common practices of Fraudsters can help you identify red flags when it comes time to invest your hard earned money. While often, fraudsters target vulnerable investors, savvy, educated people are still victimized.

Florida Based Law Firm Place & Hanley have represented thousands of clients nationwide and represent individual investors in claims for securities and stockbroker misconduct. If you’ve suffered monetary loss due to misconduct or believe your investment was mishandled, contact us for a Free Case Evaluation. View the original article at The Law Offices of Place and Hanley.

US court upholds Oklahoma death row inmate's sentence

A divided federal appeals court panel upheld the murder convictions and death sentence Tuesday of a 54-year-old man who went on a multistate crime spree in 2003.

The 10th U.S. Circuit Court of Appeals voted 2-1 to affirm the death sentence of Scott Eizember, who received the punishment after his first-degree murder conviction in the Oct. 18, 2003, bludgeoning death of A.J. Cantrell, 76. Eizember was also found guilty of second-degree murder in the shooting of Patsy Cantrell, 70, for which he received 150 years in prison, as well as a variety of other charges.   

On appeal, Eizember alleged that the trial court allowed two jurors who he alleged were "impermissibly biased in favor of the death penalty," thus "depriving him of trial by an impartial jury and due process in violation of the Sixth and Fourteenth Amendments."

The court agreed with the Oklahoma Court of Criminal Appeals and a federal district judge in rejecting Eizember's claims.

Eizember was the focus of an intense manhunt following the shootings in rural Depew but eluded authorities for 37 days. He was discovered that November by a 75-year-old volunteer at a church, but then stole the volunteer's vehicle, which he abandoned near Waldron, Arkansas.

He was captured later that day outside Lufkin, Texas, after kidnapping an Arkansas physician and his wife, holding them at gunpoint for six hours and forcing them to drive. The physician eventually shot Eizember four times. Eizember was convicted of kidnapping, carjacking and using a firearm in a crime of violence in Arkansas and was sentenced 25 years in federal prison.

In a 30-page dissenting opinion, Chief Judge Mary Beck Briscoe wrote that she would affirm Eizember's convictions "but reverse his death sentence and remand for resentencing before a fair and impartial jury."

Alaska Supreme Court won't block Medicaid expansion

Thousands of lower-income Alaskans will become eligible for Medicaid after the Alaska Supreme Court on Monday refused to temporarily block the state from expanding the health care program.

The win capped a big day for Alaska Gov. Bill Walker, who earlier flew with President Barack Obama from Washington, D.C., to Anchorage.
"The Alaska Supreme Court's ruling today brings final assurance that thousands of working Alaskans will have access to health care tomorrow," Walker said in a statement issued Monday evening.

Walker earlier this summer announced plans to accept federal funds to expand Medicaid coverage after state legislators tabled his expansion legislation for further review.

The Legislative Council, acting on behalf of lawmakers, sued to stop expansion.

Thirty other states and the District of Columbia have expanded Medicaid, or plan to do so, to include all adults with incomes at or below 138 percent of the federal poverty level.

The federal government agreed to pay all costs for the new enrollees through 2016, but it will begin lowering its share in 2017. States will pay 10 percent of the costs by 2020.

Some Alaska legislators have expressed concern with adding more people to a system they consider broken. Administration officials have acknowledged the current Medicaid program isn't sustainable, but they see expansion as a way to get federal dollars to help finance reform efforts.

On Friday, Superior Court Judge Frank Pfiffner denied the request from lawmakers to halt expansion while a lawsuit moves forward. The Alaska Supreme Court on Monday agreed, saying lawyers for the lawmakers failed to show Pfiffner erred when denying the motion for a preliminary injunction.