what is a securities attorney

by Adolfo Miller Published 2 years ago Updated 1 year ago 10 min read

A securities lawyer is an attorney who’s experienced and knowledgeable in securities law—the branch of the law that deals with investments. Securities law governs things like what information a publicly-traded company must make available, honesty and fair dealing in the investment world, and how investments are traded.

A securities lawyer is an attorney that specializes in the often complex and changing laws and regulations that apply to financial investments. These specialists can provide significant benefits to you both in planning your investments as well as in recovering any losses from wrongdoing.

Full Answer

What does a securities lawyer do?

Jun 20, 2016 · A securities lawyer is an attorney that specializes in the often complex and changing laws and regulations that apply to financial investments. These specialists can provide significant benefits to you both in planning your investments as well as in recovering any losses from wrongdoing .

What qualifications do you need to become a securities attorney?

Nov 24, 2021 · A securities lawyer can represent you in any litigation arising from your investments, including a shareholder’s derivative action, a class action suit, or a suit against your broker, or in the case of a financial professional, defending you from such claims.

What are securities laws?

Do I need a securities lawyer for my brokerage agreement?

The term securities lawyer generally refers to an attorney who specializes in the laws that govern the securities industry. A securities lawyer may represent corporations with regard to securities filings, compliance, and transactions. Other securities lawyers, like the lawyers at the Costello Law Group, focus on representing individual investors who have been the victims of fraud or who …

What is the purpose of securities law?

The Securities Act serves the dual purpose of ensuring that issuers selling securities to the public disclose material information, and that any securities transactions are not based on fraudulent information or practices.

What does securities mean in law?

A security is an investment in a business. It can take the form of shares of stock, bonds, a package of loans or mortgages offered for sale by a financial institution or a financial instrument representing investment in a company or an international project.

What do securities lawyers do Canada?

Advising issuers and underwriters through a wide range of equity and debt financings, including start-up financing, mezzanine financing, public offerings and private placements. Structuring of corporate finance transactions. Advising on securities regulatory requirements for public offerings and private placements.

What is a security business law?

Securities law (or Capital Markets law) is the group of laws and regulations that govern the issuance of securities. A security is a financial instrument usually designed to raise money for a business from investors in the business.

How are securities regulated?

On the federal level, the primary securities regulator is the Securities and Exchange Commission (SEC). Futures and some aspects of derivatives are regulated by the Commodity Futures Trading Commission (CFTC).

Should I take securities regulation?

Those who want to be corporate generalists should seriously consider Securities Regulation because of the pervasive impact the federal securities laws have upon corporate financing by small business and large corporations as well as on corporate acquisition transactions and the securities markets in general.

What is security law Canada?

Canadian securities laws prohibit insiders of reporting issuers, and others who are in a special relationship and have access to undisclosed material information, trading in securities while in possession of such information or 'tipping' others regarding such information.

What are securities in finance?

Securities are fungible and tradable financial instruments used to raise capital in public and private markets. There are primarily three types of securities: equity—which provides ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine aspects of debt and equity.

Are securities illegal?

Securities fraud is an illegal or unethical activity carried out involving securities or asset markets in order to profit at the expense of others. This type of fraud is a serious crime usually involving the investment world. Examples of securities fraud include Ponzi schemes, pyramid schemes, and late-day trading.

What determines a security?

Generally courts in states that apply the risk capital test will use both the Howey test and the risk capital test to determine whether something is a security. If an instrument meets the definition under either test, the court will conclude that it is a security.

Why is Bitcoin not a security?

In 2018, Clayton clarified in an interview with CNBC that true cryptocurrencies (i.e., those that simply act as replacements for traditional fiat currency) are commodities rather than securities ("SEC chairman: Cryptocurrencies like bitcoin are not securities" June 6, 2018).Mar 21, 2022

Types of Securities Lawyers

While securities law is itself a specialized field of law, there is also more than one type of securities lawyer. There are transactional securities lawyers, who help companies raise capital, obtain and maintain listings on a stock exchanges, assist in mergers and acquisitions and perform the varied reporting requirements for public companies.

Due Diligence

A securities lawyer can play a critical role in protecting your investments.

After the Investment

A securities lawyer can advise you when you have a question as to how your account is being handled, or on issues of suspected securities fraud, mismanagement of your investments and incorrect executions, pricing and margin calls.

Securities Arbitration and Litigation

Finally, a securities lawyer can represent you in any litigation arising from your investments, including a shareholder’s derivative action, a class action suit, or a suit against your broker, or for a financial professional, defending you from such claims.

Transactional Securities Lawyers

Securities lawyers also frequently represent corporate clients in the transactional work involved with initial public offerings, private sales of securities, issuance of stock or other securities, and mergers and acquisitions.

Questions? Talk to a Securities Lawyer

The securities lawyers at Sallah Astarita & Cox, LLC have 100 years of combined experience as SEC Staff attorneys and brokerage firm attorneys. If you have a question about securities law, or whether a securities lawyer can help you, call them at 212-509-6544.

What is a securities lawyer?

A securities lawyer is an attorney who’s experienced and knowledgeable in securities law—the branch of the law that deals with investments . Securities law governs things like what information a publicly-traded company must make available, honesty and fair dealing in the investment world, and how investments are traded.

What is Silver Law Group?

Silver Law Group is a leader in stockbroker misconduct cases. Generally, investors are required to sign an arbitration agreement when opening a brokerage account which requires all disputes to be submitted to FINRA or securities arbitration.

Is securities law complex?

As a result, securities law is complex and changes fairly often. Securities lawyers must understand who regulates which kinds of securities, know-how specific situations tend to play out, and keep abreast of changes.

What is securities law?

Securities law refers to federal and state statutes, regulations and judicial decisions that govern the offer, sale, issuance, registration, and marketing of securities. These laws protect investors and the securities industry by preventing financial fraud, market manipulation, and insider trading.

What is security in finance?

First, let’s go over some definitions. Security is a fungible financial instrument used to raise capital in public and private markets . Examples of securities include stocks, government bonds, corporate bonds, exchange-traded funds (ETFs) and certificates of deposit (CDs). If you have a 401 (K) or another type of retirement account, you most likely own securities.

What is the role of the SEC?

Securities and Exchange Commission (SEC) is a federal agency whose mission is to: “protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The SEC strives to promote a market environment that is worthy of the public’s trust.”

Who is responsible for licensing firms and their agents?

In addition to the SEC and FINRA, individual states have their own security regulators or security commissioners who are responsible for licensing firms and their agents, investigating violations of state securities law, and filing enforcement actions when appropriate.

Who regulates brokerage firms?

Brokerage firms are regulated by the Financial Industry Regulatory Authority (FINRA), a not-for-profit organization authorized by Congress. FINRA writes and enforces rules. It also registers broker-dealer firms and brokers, educates investors, and administers a dispute resolution forum for investors, brokerage firms, and brokers.

Who is Costello Law Group?

The Costello Law Group specializes in stockbroker misconduct and investment fraud. Protect your investment today – call the Costello Law Group.

What Does a Securities Attorney Do?

A securities attorney handles legal matter related to the financial assets of a client. As a securities attorney, you typically specialize in regulatory, transactional, or litigation work. Your job duties vary by your specialization.

How to Become a Securities Attorney

The qualifictions that you need to become a securities attorney include a degree and license to practice law. You can start in this career by earning a bachelor’s degree and passing the LSAT exam. During law school, you can take classes and apply for internships that help you specialize in finance law.

What can an attorney do for a broker?

When you meet with your broker, your attorney can brief you on the legal obligations that your broker owes you. These include their fiduciary duty and your right for full information disclosure on the investment . They should also be forthcoming in determining the suitability of the product for you.

What to do if you are a victim of securities fraud?

Lastly, if you’ve become a victim of securities fraud, your lawyer can represent you in the litigation. They’ll do their best to recoup your losses.

What do you own in a company?

If you’re a shareholder in a company, then you own “securities” in that company. These come in the form of stocks, bonds, or mutual funds.

What is a securities attorney?

For corporations, securities attorneys are the first line of defense when it comes to financial expansion and capital gain. For individuals, these legal representatives can keep an eye on potential investments. The role of the securities attorney is difficult to understand, but if you’re looking to make capital gains and want to keep your investments protected, it’s a good idea to consult legal counsel.

What are the three facets of securities law?

The first is transactional , such as when financial advisors help facilitate broker-dealer agreements . The second is regulatory and involves securities arbitration and the Financial Industry Regulatory Authority (FINRA). The final part involves commercial litigation, federal courts, and navigating securities fraud committed by brokers and institutional investors. Securities attorneys are often involved in all three sectors but focus particularly on litigation and especially on securities fraud.

Where should they be licensed?

Your real estate attorney should be licensed to practice law in the state where your property is located, as much of what they do is governed by state law. Your Securities attorney, however, typically operates under federal securities laws, so it doesn’t matter where they are licensed as they are able to help clients under federal law in any state.

When do I need to hire them?

When you get an accepted letter of intent, that’s what you should hire your real estate attorney. They can help you draft a purchase agreement with the appropriate terms related to your purchase of the property.

What does a Securities attorney do?

Your Securities attorney will provide an organization chart for your lender’s approval, showing the legal entities you will use to take title to the property and the members of your management team.

Bottom Line

Both types of attorneys are necessary to successfully closing a commercial real estate transaction, and letting them each play their respective roles will assist you in successfully getting your deal to the closing table. Your real estate attorney will help you get the loan closed and keep you from making costly mistakes with the seller.