Chapter 6 Flashcards
agreement between two or more persons to commit a crime at sometime in the future.
Conspiracy
Practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws.
Securities Fraud
Perpetrator develops a scheme using the mails to defraud another of money or property.
Mail Fraud
Occurs when an individual willfully makes a false statement during a judicial proceeding after taking an oath to speak the truth.
Perjury
Criminal offense that involved interference, through words or actions, with the proper operations of a court or officers of the court.
Obstruction of justice
Aggressively declaring someone for the payment
Illegal touting
Fraudulently encouraging people to buy certain stocks to inflate prices, then selling own or someone else’s shares and making profit
Pump and dump
High risk and under a dollar
Penny stocks
Low risk that is not worth anything and leads to job losses
Junk bonds
An economic system based on private ownership of the capital using the laissez fairy model
Capitalist economy
Not investing on wealth but moving the money around. They don’t provide anything of tangible use
Paper entrepreneurism
Include engineers, investors, production managers, marketers, owners of small business, produce goods and services people want to generate wealth
Product entrepreneurs
The practice by market makers of dealing on advance information provided by their brokers and investment analysis, before their clients have been given the information
Front running
