What is Securities Fraud?

Legal Definition
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. Offers of risky investment opportunities to unsophisticated investors who are unable to evaluate risk adequately and cannot afford loss of capital is a central problem.

Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company's financial reports, and lying to corporate auditors. The term encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange.
-- Wikipedia
Legal Definition
Securities fraud includes theft from manipulation of the market, theft from securities accounts, and wire fraud.

See White-collar crime, Securities Law
Legal Definition
An intentional omission, concealment or a perversion of any financial information that is used to cheat or to take an unlawful advantage of any investors.