To whom is the term "insider trading" related?

This question was previously asked in
UP Police SI (दरोगा) Previous Paper 2 (Held On: 13 Dec 2017 Shift 3)
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  1. Hawala
  2. Public
  3. Share Market
  4. Tax

Answer (Detailed Solution Below)

Option 3 : Share Market
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यूपी पुलिस SI (दरोगा) सामान्य हिंदी मॉक टेस्ट
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Detailed Solution

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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.
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