Securities fraud refers to illegal activities that deceive investors regarding the value or performance of financial assets, known as securities. This can include misleading information about a company's financial health, insider trading, or manipulating stock prices to create false appearances of market activity. Such fraudulent practices undermine the integrity of financial markets and can lead to significant financial losses for investors. Regulatory bodies, like the Securities and Exchange Commission (SEC), work to detect and prevent securities fraud, ensuring that all investors have access to accurate information when making investment decisions.