What is Leak Detection in Stock Market?
Leak detection refers to the process of identifying and analyzing stock market leaks, where a company's financial information or profits are not being accurately reported. This can be due to various reasons such as internal accounting issues, fraudulent activities, or misreporting.
In recent times, there have been several high-profile cases of stock market leaks, including the Enron scandal in 2001 and the Theranos scandal in 2015. These cases highlighted the need for effective leak detection mechanisms to prevent financial losses and reputational damage.
Techniques Used in Leak Detection
- Machine Learning Algorithms
- Data Mining Techniques
- Paperwork Review
In addition to these techniques, other methods used in leak detection include manual review of financial statements, audits, and regulatory filings.