Dr SIMHADRI KOTAPATI
BLOG
I N S I D E T R A D I N G
Prolog: This is the weekend blog to the students, who
are going to work on rare or demand skill jobs like Tech companies, MNC Banks,
Research companies, and some privatized stock markets, these information going
to questioned when students/graduates appear in interview for big package.
Definition of Inside trading: In side trading is the
word using when you breach security of corporate laws, a crime against economic
and social wealth.
Inside Trading:
When we working in a stock market related Tech or MNC Banks or Pioneer
companies in privatized sector where competition is high, these laws are
commonly applied, in some countries these are consider as a crime against more
than a person, imprisonment of multiple years. To protect the economy and
financial wealth. This is not a punishment of grudge on someone, this is providing evidence of bank transactions of
money of top employee in huge amount or assets (money laundering), off shore
investments.
When you work in a
big company which depends on more people of employees, shareholders, foreign
investors, billions of dollars and you are one of the key person to the
company, your telephone, relatives, family members can be access to monitored.
About your holiday plans, feature plans, places, visits, over purchasing to get
in to the trouble for company smooth profits.
Inside trading is a
crime when you transfer a secret information of your company when you are in a
key position in that company, or Joint ventures, mergers, acquisitions for the
company to brokers or other companies which is beneficial for the or stock
price manipulation through these corporate structures.
Selling or breaching
the contract of the company, copying the company competitive advantage to form
a own business or selling to other company.
Sometimes if you
devaluate the company through tampering the values through bribing or employee
disputes creating between the company and responsible for intentionally
downgrading the company for money.
Some times leaking
the key shareholders information also a crime from the company perspective when
you are in the board or CEO position.
These are applied to
everyone irrespective of locals or non-locals, if you are the main to the
company this one doesn’t apply to you generally taking a company to
profitable rarely happens like
coincidence your skills and company, generally any one pic a smooth company.
How to avoid wrong
guidance:
1.
Maintain
transparency in Bank accounts, maintain major banks if you are in key position.
2.
Be in
touch with your senior management or board of directors and relationship with
police time to time.
3.
Attend
the social/cultural programs in the community
4.
Take
the official steps when you leave the job, settle your stocks, dividends,
voluntary retire-ment because top positions may get fatigue.
5.
Explain
your feature plans if ask your company directors without any bios
6.
When
you talk in the phone be aware of talking with competitive companies and avoid
almost with senior management and meet directly rather than phone because they
may trick you and make confuse with unexpected questions.
7.
Hide
your bank details or passwords if hacked immediately notice to the senior
officials, most of the time it’s for maid of honor strategies.
8.
Avoid
appointing your relatives or close kin without any qualification which doesn’t suits
to the job
9.
Update
your health conditions, requirements to the company and reasons behind to
perform longer time
10.
Inside
trading is called as blue collar crimes, which can affect you and the company involved
with huge fine by the court, sometimes you lose the senior positions for ever.
Tip: We all want to be a high
profile life, and luxurious with glamor but we need a high knowledge, with big
qualification, senior management or Technical Qualification to maintain the
company survival.
You can easily can feel the CEO’s knowledge they can automatically
answer any discipline of the company questions from stakeholders, directors,
foreign investors without a stop.
my experience when I went to Business to
Business marketing case study to a big company the Chairman haven’t discussed
with my colleague who is more aged than me, because he is less degree studying
than me.
Send me your
questions MBA graduates and your companies aspirations and any interview
preparation tips.
