The behavior of corporate executives who make profits by manipulating stock prices or encroaching on company assets is a serious illegal act and may involve a number of legal risks such as financial fraud, insider trading, and job encroachment. The following analysis of the possible means and consequences of such acts from the perspective of law and compliance aims to emphasize the importance of legal business： --- ###1. Common methods of manipulating stock prices (examples of illegal acts) 1. **False information disclosure** -**Fictitious positive information**: Release false product breakthroughs, financial data or cooperation agreements to induce investors to buy and drive up stock prices. -**Concealment of major risks**: Such as negative news such as debt crises and legal proceedings, to conceal the true situation of the company. 2. **Market manipulation (such as “driving up shipments”)** -**Joint funder hype**: Reverse transactions through linked accounts and create false trading volumes to attract retail investors to follow suit and sell at a high level. -**Spreading market rumors**: Using the media or social platforms to spread false news to affect stock prices. 3. **Insider trading** -**Use undisclosed information to trade**: Buy and sell stocks before major events (such as mergers and acquisitions, financial reports), or disclose information to others for profit. --- ###2. Hidden means of encroaching on company assets (examples of illegal acts) 1. **Fictitious transaction transfer of assets** -**Transfer of benefits from related-party transactions**: Purchasing related-party products at high prices or selling assets at low prices to empty the company's profits. -**Inflated costs/expenses**: Obtaining company funds through false contracts and false invoicing. 2. **Abuse of power for personal gain** -**Misappropriation of funds**: Transfer company funds to personal accounts in the name of ”prepaid accounts“ and ”borrowing". -**Encroachment on intellectual property rights**: Transfer company patents and customer resources to other entities under personal control. 3. **Use complex architecture to mask traces** -**Multi-layer shell companies**: Hide the flow of funds through offshore companies, holding equity on behalf of others. -**False investment name**: Transfer assets in the name of ”overseas projects“ and ”R&D investment". --- ###3. Common ways to avoid supervision 1. **Financial fraud** -Beautify the statements by exaggerating income, understating costs, hiding liabilities, etc., to mislead investors and audit institutions. 2. **Exploit legal loopholes** -Choose to set up a company in an area with looser supervision, or cover up illegal income through “legal” forms (such as high salaries and bonuses). 3. **Interfere with audit and compliance** -Coercing or bribing auditors, destroying key evidence, preventing internal reports, etc. --- ###4. Legal consequences and risks 1. **Criminal liability** -May violate the “crime of manipulating the securities market”, “crime of encroachment on position”, “crime of breach of trust harming the interests of a listed company”, etc. in the Criminal Law, and face fixed-term imprisonment and fines. 2. **Civil compensation** -Damaged investors or companies can file civil lawsuits and claims. 3. **Reputation and professional risk** -Personal and corporate reputations are damaged, they are banned from the market, and their careers are over. --- ###5. Compliance recommendations: Prevention and supervision 1. **Strengthen corporate governance** -Establish an independent board of directors and audit committee to ensure financial transparency and decision-making checks and balances. 2. **Perfect internal control** -Set up a multi-layer review mechanism for related-party transactions, fund approval, information disclosure, etc. 3. **External supervision mechanism** -Regularly accept third-party audits and cooperate with investigations by regulatory agencies such as the Securities and Exchange Commission. 4. **Whistle-blower protection** -Set up anonymous reporting channels to encourage employees to supervise and protect the rights and interests of whistle-blowers. --- ### Summary Any attempt to profit by manipulating the market or encroaching on assets faces severe legal sanctions. Corporate executives should abide by professional ethics and create value in a legal manner. Investors and companies should also be vigilant and use professional and legal means to protect their rights and interests. If relevant clues are found, they should be reported to the regulatory agency in a timely manner.