CISM Exam Questions and Answers

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CISM - Certified Information Security Manager

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NEW QUESTION: 1
Which of the following statements regarding insider trading penalties is true?
A. Any contemporaneous trader who has lost money due to an illegal insider trade may sue the violator for both the amount of his losses and pain and suffering, as determined by the court.
B. The SEC may seek both civil and criminal penalties against an individual who is found guilty of insider trading.
C. A broker-dealer who is found to have provided inadequate supervision over an agent who is found guilty of insider trading is also subject to insider trading penalties.
D. Both A and C are true statements.
Answer: D
Explanation:
Explanation/Reference:
Explanation: Both A and C are true statements regarding insider trading penalties. The SEC may seek both civil and criminal penalties against an individual who is found guilty of insider trading, and a broker- dealer who is found to have provided inadequate supervision over an agent who is found guilty of insider trading is also subject to insider trading penalties. Any contemporaneous trader who has lost money due to an illegal insider trade may sue the violator, but only for his losses, and not for pain and suffering.


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