This presentation by Money 2.0 Conference elaborates on the most pervasive fraud in the financial industry- Stock Market Fraud. With the assistance of this presentation, you will get to understand what is stock market fraud, what are the common types of stock market fraud one should be aware of while investing, and what guidelines you should follow to avoid getting into the traps of stock market fraud.

1. Comprehending
Stock Market Fraud
Through Money 2.0 Conference

2. Table Of Contents
● What is stock market
fraud?
● Different types of stock
market fraud
● Guidance to avoid stock
market fraud

3. What is stock market fraud?
● Every stock market investor enters the market with the intention of profiting.
● A stock market is a place where the company's owners raise capital by selling a small
percentage of their ownership to buyers. It is a location where shares are bought and sold.
● However, as pointed out at various finance conferences such as Money 2.0 Conference,
stock market fraud occurs when brokers, dealers, insiders, and traders dupe them into
purchasing shares at exorbitant prices.
● It is a crime against investors. From guaranteed income schemes to advance fees for higher
return scandals, cheaters continue to entice investors.

4. Types of stock market fraud

5. Shell Companies
The Indian government took action against companies that did not follow the rules. Securities
market regulations prohibit the use of stock exchanges. These businesses were dubbed "shell
companies." They entice investors by posing as group companies of well-known brands.
Boiler Rooms
High-pressure selling technique used over the phone to sell shares in speculative or fraudulent
securities. Brokers commit boiler room fraud when they recommend stocks that are outside of
the client's risk tolerance. These scams enable brokers to promote penny stocks.
Pump & Dump
Rumors and fake news abound in the stock market. Misleading information contributes to the
rise in share prices. When the stock reaches a predetermined price, the dumper sells to profit
handsomely. They lose money when they sell the stock.

6. Insider trading
Insider trading occurs when an insider trades in the stock market to manipulate stock
prices using a material, non-public information.
Churning
Many brokerage firms give incorrect advice to investors and force them to sell their
investments to generate additional brokerage. The high volume of buying and selling in
investor accounts allows brokerage firms to earn a significant fee-based income.
Financial statement frauds
SEBI monitors fraudulent stock brokers in light of the growing number of corporate frauds.
Management purposefully manipulates financial statements to exceed analyst
expectations.

7. Guidance to avoid
stock market
fraud
● Setting aside time to conduct independent
research on any security you purchase is
essential.
● If something appears to be missing, there is
most likely a reason for this.
● It would be difficult to do it manually, but
attending a knowledge-intensive financial and
insurance conference, such as Money 2.0
Conference, would be beneficial.
● Stock market swindlers are evolving, and it is
critical to remain vigilant to combat them
effectively.

8. Thank You!
Money 2.0 Conference
https://www.money2conf.com/