Series 79 practice questioneasySEC Enforcement Actions
If the SEC obtains an injunction against an individual for violating securities laws, what is the immediate effect of this action?
- AThe individual is sentenced to prison
- BThe individual is automatically barred from all securities activity
- CThe individual owes treble damages to investors
- DThe individual must stop engaging in the prohibited conduct✓ Correct answer
Explanation
Why D — The individual must stop engaging in the prohibited conduct
An injunction is a court order requiring an individual to cease certain actions. It does not impose prison or damages directly, making this a key regulatory tool.
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