Stock Market Scams

whenever we think of stock market, we think of getting large chunks of money. usually, trading of shares are done in bulk in the stock market. there are experienced guys who better know wen to buy,wen to hold,wen to sell. similarly there are little number of people who are ignorant about these stuff. some follow criminal malpractices.

i 'm gonna write something about stock market scams which include the famous insider trading done by mr. rajrathnam a srilankan born billionaire who is the founder of galleon. And also the harsh mehta scam and finally the martha stewart case.

first, the million dollar scam done by galleon promoter in the insider trading.
so wat exactly is insider trading all about?
by definition we go about,Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company.
wat exactly did mr.rajrathnam did?
The companies included Hilton Hotels Corp, Google Inc, IBM, Advanced Micro Devices Inc and several other companies. so rajrathnam decided to buy stocks of these companies by using the information from an insider and made a hell a lot of money. he made US$20million

Harsh Mehta
Harshad Mehta was an Indian stockbroker caught in a scandal beginning in 1992. He died of a massive heart attack in 2001, while the legal issues were still being litigated.In April 1992, the Indian stock market crashed, and Harshad Mehta, the person who was all along considered as the architect of the bull run was blamed for the crash. It transpired that he had manipulated the Indian banking systems to siphon off the funds from the banking system, and used the liquidity to build large positions in a select group of stocks. When the scam broke out, he was called upon by the banks and the financial institutions to return the funds, which in turn set into motion a chain reaction, necessitating liquidating and exiting from the positions which he had built in various stocks. The panic reaction ensued, and the stock market reacted and crashed within days.He was arrested on June 5, 1992 for his role in the scam.

Martha stewart

Martha Stewart has been in the news for several months because the U.S. Securities and Exchange Commission believes that Martha Stewart was told by her friend Sam Waksal that his company ImClone’s cancer drug had been rejected by the Food and Drug Administration before this information was made public. This rejection was a huge blow to his company and the price of its stock went down dramatically. However, Martha Stewart wasn’t financially hurt because she had her broker sell her 4000 shares before this news was made public. If this is true, and it should be noted it hasn’t been proven yet, then Martha Stewart is guilty of insider tradin