Understanding Scams in the Stock Market: Beyond 1992

While the stock market has seen numerous scams over the years, some of the notable ones have been:

Banking and Real Estate Scams

Besides the notorious 1992 scam, other significant financial frauds include:

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Insider Trading and Beyond

Besides the various scams, the stock market is also vulnerable to insider trading, a practice where individuals use non-public information for personal gain. This can lead to significant financial losses for those who trade based on accurate and open information alone.

Government Debt and Financial Responsibility

Another critical aspect of financial health is the government's debt. As of the end of June, the outstanding debt of the central government crossed the 100 lakh crore mark for the first time, reaching 101.3 lakh crore from 94.6 lakh crore as of end-March. A quarterly report from the Department of Economic Affairs highlighted this significant increase in liabilities.

While politicians and government officials may promise resources to the people, in reality, the commitment can be lacking. For example, during the pandemic, 8 crore migrant workers had to walk long distances without food or water in the scorching sun. The government did not spend a single paisa on these people. A private individual had to arrange transportation, highlighting the failure of the government to support its citizens.

Similarly, the Telangana government's debt situation is dire, with over 8 lakh crore existing. Vikramarka, a notable politician in the region, warned that the debt is set to cross 6 lakh crore, underscoring the financial burden on the state. Despite announcing pensions for the elderly, the government faces severe shortages in funds, leaving the elderly unpaid.

The promises of affordable housing have also not been met. An MLA or MP could spend 5 crore on election campaigns and expect to make 50 crore, or ten times the investment. This illustrates the mismanagement of public funds in politics, which is essentially considered a business rather than a public service.

For more on financial scams, insider trading, and government debt, follow our Twitter channel KOmaSecurities for fresh updates and insights. Stay informed to make sound financial decisions.