1992 Indian stock market scam
So, imagine you have a toy box with all your favorite toys in it. Your friend comes over and asks to play with your toys, promising to put them all back when they're done. You trust your friend and let them play with your toys. But when they're done, some of your toys are missing and your friend won't give them back.
That's kind of what happened in the Indian stock market scam of 1992. There were some people who were supposed to take care of the stock market and make sure everything was fair and honest. But instead of doing their job, they took some of the money and stocks that belonged to other people.
They did this by pretending to sell stocks they didn't actually have, and then taking the money without giving the buyers the stocks they paid for. This made the stock prices go up and down in a way that wasn't natural or fair.
It was like they were playing with everyone else's toys, but instead of putting them back, they kept some for themselves. This made a lot of people lose money and trust in the stock market.
But eventually, the bad people got caught and punished for what they did. The Indian government also made changes to the stock market rules to try and prevent this kind of thing from happening again.
That's kind of what happened in the Indian stock market scam of 1992. There were some people who were supposed to take care of the stock market and make sure everything was fair and honest. But instead of doing their job, they took some of the money and stocks that belonged to other people.
They did this by pretending to sell stocks they didn't actually have, and then taking the money without giving the buyers the stocks they paid for. This made the stock prices go up and down in a way that wasn't natural or fair.
It was like they were playing with everyone else's toys, but instead of putting them back, they kept some for themselves. This made a lot of people lose money and trust in the stock market.
But eventually, the bad people got caught and punished for what they did. The Indian government also made changes to the stock market rules to try and prevent this kind of thing from happening again.