Under the Securities Fraud Enforcement Act,when May a Brokerage House

question 67

Multiple Choice

Under the Securities Fraud Enforcement Act,when may a brokerage house be fined?

• A) If it knew or recklessly disregarded information that would indicate insider trading activities on the part of its employees.
• B) Whenever an employee is found guilty of insider trading.
• C) If it was negligent in failing to discover insider trading.
• D) A brokerage house may not be fined under the Act.

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Definitions:

Annual Dividend

The total dividend payments issued by a company to its shareholders in a year.

Expected Return

The weighted average of all possible returns, considering the probabilities of each outcome.

Growth Rate

The rate at which a company's earnings or revenues increase in a given time period, reflecting its ability to expand its business.

Annual Dividend

The total dividend that a company pays to its shareholders in a single fiscal year.