'Financial securities' is an umbrella term that represents a staggering variety of assets and investments, some of the more common of which include stocks and bonds. If you own a business and are considering retaining the services of a securities law attorney, keep reading below to discover just four examples of how they can help.
Handling Security Offerings
If your business is booming and you are looking for investors to help it grow even further, then you may have already considered offering public or private securities. The former case is often referred to as "going public", or an "initial public offering" (IPO), and is an immensely complex process that involves everything from partnering with an underwriter to creating disclosure and registration statements. Navigating the legal and bureaucratic aspects of an offering -- even a smaller, private one -- is just one such instance in which a securities law attorney is necessary.
Complying with SEC Regulations
The Securities and Exchange Commission (SEC) is the regulatory body that is in charge of overseeing securities in the United States. Without an attorney, your business risks making a mistake that could result in major legal and financial consequences. A securities law attorney will ensure that all securities are issued, traded, and marketed in accordance with current regulations.
Investigating Potential Fraud
If your business has invested through a securities broker, but you suspect that the broker has committed a breach of their fiduciary duty, then hiring a corporate lawyer who has experience with securities law is an absolute necessity. An attorney can investigate circumstances that qualify as fraud, a failure to disclose pertinent information, or a failure to put the interests of your business above their interests as a broker. If you believe you have evidence of wrongdoing, there is no reason not to contact a securities attorney immediately.
Abiding by Rules of Representation
In the aforementioned situations, businesses all too often assume they can get away with hiring someone to represent them who has some industry expertise but is technically not an attorney. Such an ill-advised decision is almost always motivated by a desire for cost-cutting, but ironically, it can end up being much more costly in the long run. That's because most states require a corporate representative in a securities case to be a licensed and practicing attorney. If your business violates these laws regarding representation in the course of litigation, then you'll likely have created even bigger problems going forward.
Reach out to a securities law firm like Carter & West Law for more information.