WCC Test 2 Vocab

ghost services

Services never provided

upcoding

Billing for a more expensive service when a Cheaper one was provided         

Payola

Bribes given to disk Jockeys and station managers by record manufacturers and record labels to promote or play certain records on commercial radio   

Religious affinity scam

Make faith in God synonymous with faith in a phony investment scam and you cannot separate the two: exploit trust, friendship, and cohesiveness that exists in sharing common spiritual identity 

Wards rule #6

Any nonprofit or religious institution needs a yearly auditor P

Insider Trading

stockholders, directors, or other officers of a corporation as well as those who receive information from these people that is not publicly available and who take advantage of this information for their own benefit and profiting from them

Front Running

Occurs when stock brokers buy stock for themselves before buying it for their clients. The purchase for themselves will cause the price to go up for the second purchase and they can then sell their stock at higher price and make a profit for themselves      

Pump and dump

swindlers post messages in investor chat rooms about supposedly major developments at companies. The goal is to build interest in an increase in the buying of the company stock so the price will shoot up. The people posting the messages have already purchased the stick with the goal of getting the price of the stock to increase and then they sell their shares.  They make a profit and the people they duped loose when price drops         

Junk bonds

 Risky bonds. BB+ or lower. Based off a study his professor did on how the low yield/high risk bonds where he showed that a large and diversified portfolio of these bonds could over time do very well and make money. To be successful you need insider information Michael Milken

Level playing field

economy is a social institution and must be seen as fair. Take risks and if it pays off there is a reward

laissez faire:    

“Hands off” minimal or no government regulation

General deterrence

punishment of an offender is used to discourage the general public from committing similar crimes

fetishism of money

 the false belief that money possesses independent, magical, or natural powers to create wealth, happiness, or solutions on its own, rather than recognizing it as a social tool created by human labor and relationshipS