SEC probes Thaicom insider share deal claims

http://www.bangkokpost.com/news/local/38875/sec-probes-thaicom-insider-share-deal-claims

Summary:
U.S. Security and Exchange Commission have recently found an obscene patter in share prices of a satellite operating company, Thaicom. Although the Stock Exchange of Thailand may not pick out the irregular jump of share prices and volume for Thaicom, but the share price on Monday increased up to 29% right after the talks that the Finance Minister had about buying out indirect stake. Then Thaicom shares fail drastically. The opposition politicians are suspecting whether there is insider trading involved in Thaicom along with the follow up from SEC. Of course the suspected individual revealed that they do not know any further information about this stock-price change. There were also Thai politicians involved in the insider trading.
Connection:
Chapter 5 mentioned about the Users of Financial Statements, insiders and outsiders. Insiders consist of owners, executive, and management group. These groups of people's roles are to monitor the company's financial health. However, in the article, the insiders of the company are suspected insider trading. The financial minister manipulated the non-public information to change the share prices so that he will make money from his share knowing that the company might buy out the indirect stake in satellite operator. He even argued that none of his relatives and friends brought shares or gained money. The outsiders of the financial statements are looking at the share history and wonder why there is such a vast different in the closing price.
Reflection:
The article stated that there is a SET trading system that picks out the irregular share activities. However, it is obvious that there is something wrong with the share prices and the SET system did not picked it out. As shareholders, we do not know that if this missed detection was intentional or on purpose because the system was set up by the Thai government. Even so, two politicians are suspected involved in the yet-to-know insider trading scandal; therefore, no one knows if these two cases are related. However, the actual victim that suffered is the innocent shareholders. They do not know what dangerous stock prices are waiting for them because they obviously do not know the non-public news, the share prices will drop and lastly, they suffer when the company faces fraught and political risks.