Investments in stocks, bonds and other debt instruments or ownership interests can be risky. Most losses in these securities are the result of natural market forces, trends and business factors. Occasionally, however, a loss may be partially or wholly attributable to misrepresentations made by someone selling or buying the security, or by the failure of that person to disclose information they have a duty to disclose.

In a closely-held corporation, the potential fraud is often by the corporate insiders who buy back shares of stock without disclosing information that would have the effect of increasing the price (such as recent sales at a higher price or offers by third parties to purchase the company). If your losses have been the result of wrongful action or fraud of an insider, you may be able to do something about it and recover your losses.