“Insider trading” (also known as “insider dealing”) occurs when someone makes an investment decision based on information that is not yet known to the public at large. Sometimes trading on this information allows persons to make a profit. At other times it can help them avoid a loss. Either way this type of trading is illegal
Manipulation connotes intentional or willful conduct designed to deceive or defraud investors by controlling or distorting market activity. Non-disclosure or false or misleading information is usually essential to the success of a manipulative scheme.
The Ponzi scheme derives its name after the famous Carl Ponzi whose case came to the forefront in the 1920’s. Ponzi stole US$9.8 million in a scheme which operated in Boston. Over 10 thousand investors were involved.