Scams and Fraud in Stock Market - 5370 Words

INDEX SR NO. | CONTENTS | Pg No | 1. | What is stock market? | 1 | 2. | What is fraud? | 3 | 3. | Definition of fraud | 4 | 4. | Fraud law amp; legal definition | 5 | 5. | Definition of scam | 7 | 6. | When stock fraud occurs | 8 | 7. | Financial statement fraud | 10 | 8. | Features of security scam | 12 | 9. | How to spot stock scams | 13 | 10. | Avoiding stock market fraud amp; scams | 14 | 11. | Indicators for scams | 15 | 12. | Top 10 stock market scams | 16 | 13. | Top 10 scamster of India | 20 | 14. | Conclusion | 33 |†¦show more content†¦Fraud Law amp; Legal Definition Fraud is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage. Fraud may also be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading. To constitute fraud, a misrepresentation or omission must also relate to an existing fact, not a promise to do something in the future, unless the person who made the promise did so without any present intent to perform it or with a positive intent not to perform it. Promises to do something in the future or a mere expression of opinion cannot be the basis of a claim of fraud unless the person stating the opinion has exclusive or superior knowledge of existing facts which are inconsistent with such opinion. The false statement or omission must be material, meaning that it was significant to the decision to be made. Sometimes, it must be shown that the plaintiffs reliance was justifiable, and that upon reasonable inquiry would not have discovered the truth of the matter. For injury or damage to be the result of fraud, it must be shown that, except for the fraud, the injury orShow MoreRelatedFinancial Crisis Of 2008 Struck The World1398 Words   |  6 Pagesstruck the world, there were multiple business scams and schemes that became exposed, creating a colossal uproar and unrest around the world. When the stock market collapsed, people all across America took a hit, with 2.4 trillion dollars of the Americans people’s savings vanishing in just a few weeks. This financial crisis also brought to light an unprecedented amount of fraud, over exposing people who were cutting corners. One of the most famous scams that surfaced in late 2008 was operated and executedRead MoreAre You Just Starting Out In The Stock Market? If So, You1671 Words   |  7 PagesAre you just starting out in the stock market? If so, you may be bewildered by the wide variety of stocks and wondering where to put your investment. Aside from the most dominant stocks, there are also other minor ones that are too small to be listed or have just come into the mark et. These are known as penny stocks and are known for their high risk and unpredictability - they may make enormous returns or the companies may go bust and you may lose all your investments. In this economic turmoil, sharesRead MoreProject on Satyam Scam1395 Words   |  6 PagesSatyam Saga SATYAM SAGA Introduction: On 7th January, Wednesday, Satyam Computer Services Chairman B Ramalinga Raju resigns and disappears after confessing to the largest fraud of Rs. 7,136 crore in Indian corporate history. He admitted to committing a gigantic fraud that shook corporate India and the stock markets to the core. 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Madoff s trickery ruined the lives of many peopleRead MoreComputer Services Scandal And The Media Scandal Essay1244 Words   |  5 Pagesto know about the famous Satyam scam also known as Computer Services  scandal, and   quot;India#39;s Enronquot;(Enron was a US based company which was inflicted with a similar accounting fraud)the news grab by attraction I was eagerly starts reading that news and I was completely shocked after reading the news, because the news contains about biggest accounting frauds since ever. In the news it has been shown Mr. Ramalinga raju(master mind after all this fraud) ,the news unfold like that RamalingaRead MoreGlobalization Of The United States1377 Words   |  6 Pagesbecause at times capitalism is centered on violence and submission. Capitalism puts enormous pressure on society to make capital. In the United States have seen a lot of fraud through the years, as well as other high profile crimes in which the fraud formed part. The most feared crime by companies in developed countries is fraud, even compared to other crimes such as theft and sabotage. Far from being under control, this scourge is helped by greater complexity in business, the increasing globalization