What is Insider Trading

Financial markets are vibrant and fragile in terms of structure and mechanism and more prone to risks, failures, and exploitations than the other markets. This motivated the researchers to discuss and analyse the backstage of fraudulent activities in the capital markets. This chapter explains the main characteristics of securities markets and certain types of securities fraud which encompass a wide range of deceptive practices in capital markets. Traditional and modern approaches are reviewed which are used to detect and prevent fraudulent activities using qualitative and data-driven techniques. It is concluded that investors, market professionals, and regulators seek autonomous data mining techniques to combat securities fraud, especially stock market manipulation.