An increase in global economic activity creates one big impact – it also leads to an increase in the buying and selling activity of financial securities. While that in itself is a positive trend, the worrisome factor is that it also leads to a rise in the risks posed by malpractices of all sorts. Indeed, regulators worldwide have a tough task on hand as it is never easy to identify malignant and illegal activity, leave alone proving who the actual beneficiary is. Insider trading is one such illegal activity which provides an edge to a particular investor or a group of investors, leading the opportunist to book abnormal profits in a very short time. Insider trading defies the spirit of the investing game and is a serious punishable offence in several developed and emerging markets.
The New York Stock Exchange (NYSE) is arguably the world’s most efficient market and yet there have been instances of insider trading. Such cases of insider trading are to be found across both developed and emerging markets alike. The ill-reputed Raj Rajaratnam, who was the founder of Galleon Group, was arrested in 2009 by FBI on insider trading charges in the United States. Rajaratnam was accused of earning up to USD 63.8 million between 2003 to 2009 by adopting various illegal insider trading practices and investing in stocks such as eBay Inc., Goldman Sachs Group Inc. and Google Inc., now called Alphabet Inc.
Denne historien er fra March 02, 2020-utgaven av Dalal Street Investment Journal.
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Denne historien er fra March 02, 2020-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
