I N S I D E T R A D I N G Blog for senior management MBA's

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.