Series 63 practice questionmediumCriminal Penalties—Penalties for Natural Persons and Firms
Which of the following could NOT be imposed as a criminal penalty on a broker-dealer firm under the USA?
- AA fine up to $5,000
- BImprisonment of up to 3 years for the firm itself✓ Correct answer
- CBoth a fine and imprisonment for responsible individuals
- DCriminal conviction for willful violations
Explanation
Why B — Imprisonment of up to 3 years for the firm itself
A firm (legal entity) cannot be imprisoned; only individuals can. Firms may be fined or have individuals imprisoned for willful violations.
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