Is the US and Global Markets Prime for Another Bust?

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With the threat of a failing economy many people are seeking out new ways to make money and find financial security and freedom for themselves. One way that many people choose to do this is through the stock market or other investment opportunities. The best way for them to decide which investments they should be making is by reading information on the companies and their profit margins.

From time to time a company might not be 100% honest and forthcoming with this information. This can cause devastation for many who have invested their hard earned money.

What happens next? Well, there are many things that can take place. In some situations there are even lawyers who will take on these large corporations by filing a class action suit for fraud. Recently it was announced that Robbins Geller is suing IBM. In this lawsuit it claims that IBM withheld information from those who were purchasing their stocks between April and October of 2014. This information that was held back form public stock filings, commonly known as fraud, and significantly changed the stock valuation of IBM after later filings disclosed discrepancies of asset performance. The stock fell near $30, causing nearly a $20 Billion investor loss. After all of the lies concerning the IBM layoffs in 2013 it should not come as a surprise that IBM is not 100% truthful in their endeavors.

Today’s investors have a number of protections that were not available in previous years. This makes it safer to invest today than ever before. While the SEC (US Securities and Exchange Commission) was first started in 1929, it has taken it a long time for things to be like today. The organization was started as a way for people to be protected when they invest their money. Plus they offer the investor protection through a variety of regulations.

The SEC offers investors certain things that they can use to help ensure that they are making sound investments that are going to benefit their futures. Companies that are publicly traded are required to offer meaningful information about their financial situation to the public. This is so that the public can be protected. Additionally they are required to give other meaningful information to the public that could potentially affect their profits. If a company does not follow these steps then they can be in trouble.

It is important to note that the SEC is ran by five commissioners that are appointed by the president. These commissioners oversee different departments and areas of the SEC. The five different areas include the following: making sure laws are followed and enforced; setting out rules and making sure that they are followed; overseeing firms, advisers, agencies, and brokers; overseeing private organizations; and coordinating securities with authorities.

So while the US and global market primes are potentially ready for a bust, it is something that people can try to protect themselves from. They can learn the information that is going to help them. Plus they can really be assured that the information that they are getting is true and honest and that there are repercussions if it is not. There will be legal action that an investor can take if they should end up losing money because of misleading information.

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