The Civil Penalty for a Person Who Trades on Inside

question 18

Multiple Choice

The civil penalty for a person who trades on inside information:

• A) is payable into the U.S. Treasury.
• B) must be imposed as a result of an action brought within three years after the date of the purchase or sale.
• C) is, for a controlling person, up to the greater of $1 million or two times the profit gained or loss avoided as a result of the controlled person's violation.
• D) is determined by the board of directors of the injured corporation.

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Definitions:

Child Abuse

The physical, sexual, emotional mistreatment, or neglect of a child.

Neglect

Failing to provide adequate care, supervision, or necessary resources for a dependent, resulting in harm or risk of harm.

Unreported Cases

Incidents of a particular nature (e.g., crimes, health issues) that go unnoted or undocumented in official records or statistics.

Reporting Laws

Legal requirements mandating certain professionals to report instances of abuse, neglect, or other specific conditions to appropriate authorities.