Related Party Transactions: Why Understanding them is Critical for Investing in the Stock Market
Related party transactions are common in the stock market, but they can also pose significant risks for investors. Understanding related party transactions and their potential implications is crucial for making informed investment decisions and mitigating risks. This post explores the importance of related party transactions in the stock market, common examples of related party transactions, deceptive uses of related party transactions, warning signs of fraudulent related party transactions, protecting oneself from potential losses, the role of regulators in preventing abusive related party transactions, and recent high-profile cases.