The fraudulent and unfair practices at a stock exchanges are commonly called as __________.
A
excessive speculation
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B
manipulating share price
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C
fraud
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D
insider trading
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Solution
The correct option is D insider trading
Insider trading is defined as a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non public information which can be crucial for making investment decisions.
The overall objective of SEBI is to
protect the interests of investors and to
promote the development of, and
regulate the securities market.
Controlling insider trading and
takeover bids and imposing
penalties for such practices is one of the major objectives of SEBI.