An interesting thread which is going around the financials zone is the insider trading. Raj Rajaratnam has amassed wealth through this tip of .
He made $9 million dollars based on Google Inc’s earning expectation in 2007. He traded on the insider tip-off that the revenue would be below the expectation.
The probe in Galleon case is expanding ,as the Federal prosecutors have sent subpoena to a former employee of SAC capital advisors. It seeks trading records from Richard Grodin, who let SAC in 2004.
The news is bewildering and sends wrong signals across the world of investments.The Right to information act has to be made use of in a forceful manner to get the truth out of the insider information trading.
A small time investor ,who follows the market, who reads the reports, who testifies on the PE ratio, who then invests in a particular stock , is deprived of his fortune by this dubious , daring , hedge fund managers.
Concluding, it is always the innocent and upright who face the music.
Where to find the truth behind this non public information?
How to trace out the fact behind the insider tip of?