The billionaire hedge fund manager Raj Rajaratnam was arrested on insider trading charges.He made money by investing in stocks with highest earnings. It sounds good. His prudence in buying stocks was not a result of analysis, but by the tip off he received from insiders. There lies the catch.
He got information of Polycon earning announcements,Google earning estimates, and Hilton take over.He traded on behalf of his company Galleon with this clue .
Goel provided news about Intel quarterly earnings.As payback for Goel’s tip , Rajaratnam or his nominated entity ,executed trades in Goel’s personal brokerage account in respect to Hilton and People support ,thus depositing 250,000 $in Goel’s account. This is an illegal profit for Goel.
Rajaratnam traded with insider information leaked out by Kumar on the transactions of two Abu Dhabi bases sovereign entities.Chiesi passed on tips about Akamai Technologies to Raj , who acted swiftly on behalf of Galleon . Robert Moffat circulated inside information about Sun Microsystems, which was to be bought by IBM.The input gave Chiesi $1 million profit.
How many ways are there to earn money?
Earning by just means is a little depressing , when the revenue generated by illicit methods is so lucrative. This insider information has been in circulation for a long time, not only in U.S, but also in Other countries. The trendy moves of the company is utilised to make money . The chief executives indulge in such process to make loads of money.
Greed is manifested in so many forms. This manoeuvre of hedge funding is the latest addition to the family Of greed.
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