Corporate or shareholder securities fraud occurs when a corporation intentionally hides or misrepresents information to its shareholders to create the appearance that the corporation is financially successful, when, in fact, the corporation is not so economically healthy. A corporation has a corporate fiduciary responsibility to its shareholders, i.e. to be upfront and honest regarding the corporation's true financial condition. If the corporation violates its fiduciary responsibility in this manner, its shareholders or investors may have legitimate claims for corporate securities fraud. This type of securities fraud may be confined to a few executives of the corporation, or may involve a larger number of corporate employees, depending on the circumstances. For instance, a corporate executive or director might alter financial records or hide discrepancies in income and spending in order to commit corporate securities fraud. Because of the large number of investors and investments potentially involved in a corporation, corporate securities fraud can be economically devastating for a corporation's investors and employees alike.