Series 79 practice questionmediumSEC Enforcement Actions
If the SEC seeks to prevent an individual from acting as an officer or director of a public company due to securities fraud, what is the appropriate legal remedy?
- ACivil monetary penalty
- BCriminal prosecution
- CCensure
- DBar from serving as an officer or director✓ Correct answer
Explanation
Why D — Bar from serving as an officer or director
The SEC can seek a bar from serving as an officer or director as a civil remedy in securities fraud cases. The trap is confusing bars with criminal prosecution or monetary penalties, which are distinct remedies.
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