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Under the 1988 Insider and Securities Enforcement Act, a person convicted of insider trading can be
subject to:
A. up to 10 years in prison and a fine of $1,500,000 or both.
B. up to 5 years in prison, a $150,000 fine, or both.
C. up to 10 years in prison and a fine of either $1 million or up to 3 times the amount of profits gained or
losses avoided, whichever is greater.
D. up to 10 years in prison and a fine of either $1.5 million or up to 150% of the amount of profits gained or
losses avoided, or both.
Answer: C
Explanation:
The 1988 Insider Trading and Securities Enforcement Act increased the penalties for a
person convicted of insider trading to up to 10 years in prison and a fine of either $1 million or up to 3
times the amount of profits gained or losses avoided, whichever is greater.
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Explanation:
Explanation
ASAS Policy and Access SE Module 5
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