Analyzing Securities Fraud and Insider Trading within the Framework of Financial Crime

Abstract

Securities fraud and insider trading were significant financial crimes in Nigeria's capital market that undermined investor confidence and compromised market integrity. This study examined the nature, causes, and consequences of these crimes, focusing on the regulatory framework and measures to combat them. The research adopted a doctrinal approach, analyzing secondary data from reputable sources. The findings revealed that securities fraud and insider trading were often perpetrated through market manipulation, false disclosures, and insider trading by corporate insiders and other market participants. The study recommended strengthening regulatory frameworks, enhancing enforcement mechanisms, and increasing public awareness to combat these crimes. Collaboration between regulatory bodies and international organizations was also suggested to promote a culture of transparency and accountability in Nigeria's capital market.