Financial
markets such as the NASDAQ stock exchange provide a forum for shares of stock
in public companies to be sold or traded. Financial markets or securities law
strictly regulates these markets and oversees stock brokers and dealers. While
states each have their own securities laws, the primary oversight body is the
U.S. Securities and Exchange Commission, or SEC.
Common legal issues involving the financial
markets include stock fraud, deceit in initial public offerings, complaints
against stock brokers, and class-action lawsuits. Shareholders who have been
wronged in one of these ways have several options—pressuring company management
for change, mounting a proxy battle to install new board members, or suing.
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