Stock Market Scandal
A stock market scandal typically involves unethical or illegal activities that manipulate the financial markets for personal gain. These can include insider trading, where individuals use confidential information to make profitable trades, or accounting fraud, where companies misrepresent their financial health to deceive investors. Such actions can lead to significant financial losses for investors and undermine trust in the market.
One notable example is the Enron scandal, where executives engaged in accounting fraud to hide the company's debt, leading to its bankruptcy in 2001. This scandal prompted regulatory changes, including the implementation of the Sarbanes-Oxley Act, aimed at increasing transparency and accountability in financial reporting.