Using your knowledge of insider trading and investment fraud, explain why insider trading is illegal and how common investment fraud works.
In one to three well-organized paragraphs, be sure to:
• Define insider trading and explain why it is illegal.
• Analyze how insider trading harms fairness and trust in investment markets and describe potential consequences for individuals.
• Describe the basic features of Ponzi schemes, pump-and-dump schemes, and advance fee scams.
• Explain how investors can recognize and avoid these types of fraud, and include at least one example.
• Address and refute at least one relevant misconception or counterargument (for example: "Insider trading doesn't really harm anyone" or "High returns are safe if the offer looks professional").
Use complete sentences and accurate information supported by your knowledge of the topic.
In one to three well-organized paragraphs, be sure to:
• Define insider trading and explain why it is illegal.
• Analyze how insider trading harms fairness and trust in investment markets and describe potential consequences for individuals.
• Describe the basic features of Ponzi schemes, pump-and-dump schemes, and advance fee scams.
• Explain how investors can recognize and avoid these types of fraud, and include at least one example.
• Address and refute at least one relevant misconception or counterargument (for example: "Insider trading doesn't really harm anyone" or "High returns are safe if the offer looks professional").
Use complete sentences and accurate information supported by your knowledge of the topic.