SIE Exam Question 736: Answer and Explanation

Question: 736

Which of the following is the maximum civil penalty that can be imposed upon an individual who commits an insider trading violation?

• A. The civil penalty may be an amount up to two times the profit gained or the loss avoided as a result of the insider trading violation.
• B. The civil penalty may be an amount up to three times the profit gained or the loss avoided as a result of the insider trading violation.
• C. The civil penalty may be an amount up to $50,000.
• D. The civil penalty may be an amount up to $100,000.

Correct Answer: B

Explanation:

The civil penalty may be an amount up to three times the profit gained or the loss avoided as a result of the insider trading violation.