The Securities Exchange Act of 1934 allows shareholders to file private lawsuits in federal court in order to recover damages resulting from securities fraud. The most common provision of the law under which securities fraud actions are filed is Rule 10b-5, which essentially governs situations where a shareholder has been damaged by intentional misrepresentations in connection with the sales of securities. However, the securities fraud act does not only cover fraud cases involving misrepresentations by a company. Other common securities fraud claims might include insider trading, which occurs when a person with "insider", or non-public knowledge about a particular company, uses that information in order to trade stocks. General fraud claims against a corporation also may stem from the corporation's public offerings of stock, its financial statements, takeover transactions, and/or accounting practices. A securities fraud claim might also involve market manipulation, which may happen when a person or company attempts to create a false impression about a security in order to inflate its price or worth.