|
AUCTION RATE SECURITIES
One of the most recent forms of investment fraud has been in auction rate securities (ARS). Financial institutions sold these investments to individuals as being highly liquid and stable equivalents to cash; however, because of the liquidity stresses these same financial institutions are experiencing, the auction markets (which determine the price/interest rates on the ARS) have been failing.
As a result, individual investors have been saddled with investments that, at least for the short-term, are worthless. Some financial institutions have even started to significantly discount the value shown on account statements for the ARS in clients' portfolios. Investors are learning the hard way that these investments are neither as liquid as cash nor as stable as cash.
Various acronyms for Auction Rate Securities have been used. For example, while "ARS" is a general acronym for Auction Rate Securities, similar securities issued by municipalities are also known as "MARS", and those that issued by originators of student loans are also known as "SLARS". Some closed-end mutual funds have also issued "ARPS" (Auction Rate Preferred Securities).
Feel free to browse our site to learn more about The Nygaard Law Firm, our attorneys, or current cases in which we are involved. If you would like to speak with one of our attorneys, call us at (888) 469-5544 or complete the form below and an attorney will contact you. Please provide as much information as you are comfortable sharing, but that would allow us to contact you.
|
