Financial Markets Overview

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.