SIE practice questionmediumSEC Enforcement
If a broker-dealer is found engaging in insider trading, the SEC may impose penalties that include:
- ACivil fines and criminal prosecution✓ Correct answer
- BTax penalties only
- CTemporary closure of stock exchanges
- DConfiscation of client assets
Explanation
Why A — Civil fines and criminal prosecution
The SEC may issue civil fines, bar individuals, and refer for criminal prosecution. Tax penalties (B) are not SEC actions, nor are exchange closures (C) or asset confiscation (D).
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