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To whom is the term "insider trading" related?

To whom is the term "insider trading" related? Correct Answer Share Market

The correct answer is Share Market.

  • The term insider trading is associated with the share market.
  • Insider trading is the buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Key Points

  • Material non-public information is any information that could substantially impact an investor's decision to buy or sell the stocks that have not been made available to the public.
  • Insider trading is illegal and comes with stern penalties including both potential fines and jail time.
  • Securities and Exchange Board of India (SEBI) have stringent rules to prevent insider trading.

Additional Information

  • Hawala: Hawala is the underground, cheap and instant medium to transfer the huge amount of money.
    • Hawala is cheaper and less cumbersome than formal remittance channels such as banks, Western Union or Money Gram.
    • Hawala system is used by Criminals, Businessmen, and Nonresidents to remit money.
    • Halawa system is the backbone of the underworld, drugs/arms mafias, terrorists and smugglers. Businessmen use it transfer money to evade tax.

Related Questions

Under the member constituent agreement, trading members are required to make the clients aware of which of the following?
1. Trading segment in which the trading member is admitted.
2. SEBI registration number.
3. Basic risks involved in trading on the exchange.
Select the correct answer
Insider trading is related to
The question below consists of a set of labelled sentences. These sentences, when properly sequenced form a coherent paragraph. Select the most logical order of sentences from among the options. P: While it is good to see SEBI taking a serious view of leaks and initiating suo motu action, bringing the perpetrators to book through such old-fashioned methods may be an uphill task. Q: But recent episodes of suspected insider trading through WhatsApp groups, in which analysts shared prescient tip-offs about upcoming results for top listed companies, reveals that the framework remains porous. R: The Ministry of Corporate Affairs and the Securities Exchange Board of India (SEBI) have lately redoubled their efforts to put in place a water-tight governance framework for listed firms. S: Initiating a probe into this episode, SEBI has interrogated analysts, conducted raids on stock brokers and deployed search-and-seizure powers to confiscate laptops and mobile phones.
Which of the following is the reason for considering insider trading as harmful to the domestic economy and illegal?
Which of the following has imposed a penalty of over Rs 22 crore on Aurobindo Pharma and its promoters for violating insider trading norms?
Which of the following statements are false ? Indicate the correct code. (a) Grey market is a market for dealing in listed securities. (b) OTCEI is mainly intended for big investors. (c) Insider Trading is legally permitted in the capital market. (d) The device adopted to make profit out of the differences in prices of a security in two different markets is called ‘arbitrage’.
The question below consists of a set of labelled sentences. These sentences, when properly sequenced form a coherent paragraph. Select the mostlogical order of sentences from among the options. P: While it is good to see SEBI taking a serious view of leaks and initiating suo motu action, bringing the perpetrators to book through such old-fashioned methods 0may be an uphill task.
Q: But recent episodes of suspected insider trading through WhatsApp groups, in which analysts shared prescient tip-offs about upcoming results for top listedcompanies, reveals that the framework remains porous.
R: The Ministry of Corporate Affairs and the Securities Exchange Board of India (SEBI) have lately redoubled their efforts to put in place a water-tight governance framework for listed firms.
S: Initiating a probe into this episode, SEBI has interrogated analysts, conducted raids on stock brokers and deployed search-and-seizure powers to confiscatelaptops and mobile phones.
Which of the following statements are false?
1. Grey market is a market for dealing in listed securities.
2. OTCEI is mainly intended for big investors.
3. Insider Trading is legally permitted in the capital market.
4. The device adopted to make profit out of the differences in prices of a security in two different markets is called 'arbitrage'.
In an arithmetic progression (AP), the 9th term is 5 times the 2nd term and the 8th term is 1 more than 10 times the first term. What is the 4th term of the geometric progression (GP) whose first term is the second term of AP and whose common ratio is equal to the common difference of AP?
Series: 45, 135, 255, 405, 585, 795 A = nth term and B = (n + 1)th term Based on the above logic which of the following option is true? I: Difference between the second term and first term is 30 less than the difference between the third term and second term. II: Difference between the terms is multiple of 3. III: B = 2A