How does securtie laws protect against IPO risks?

Question

Im trying to figure out topic points to add to a power point for this. I did one slide of IPO risks now I need one slide of how securities laws deal with them.

 

Answer 1

An example of the slide you put together would help to answer this question.But you could one slide using a table with the law or rule to compare to the example.

Regarding your question: in general security law protects the public by requiring disclosure. A google search will show you some examples of recent fraud. Take the 2006 Vonage IPO where investors sued the company that they have been misled by management. Or Luckin Coffee in 2019 for a more recent example.

So there are many security laws that protect the investors from fraud and liability. This also depends on your view of more regulation vs less.

Hope this helps you. Robert

Pre IPO scams promise investors high returns and the laws are there to require the firm to disclose. You make want to look for examples about unregistered investment professionals who push these types.