Corporate fraud refers to illegal activities conducted by individuals or companies to gain an unfair advantage or profit. This can include actions like falsifying financial statements, insider trading, or embezzlement. Such practices can mislead investors, harm employees, and damage the overall economy. The consequences of corporate fraud can be severe, leading to legal penalties, loss of reputation, and financial ruin for the involved parties. Regulatory bodies, such as the Securities and Exchange Commission (SEC), work to detect and prevent these fraudulent activities to protect the integrity of the financial markets and ensure fair competition.