The Federal Statute That Carries Imprisonment as a Penalty for Trading

question 59

Multiple Choice

The federal statute that carries imprisonment as a penalty for trading securities on inside information is an example of a:

• A)private law.
• B)civil law.
• C)procedural law.
• D)criminal law.

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Definitions:

Direct Regulation

involves government interventions that directly restrict or control the activities, decisions, or characteristics of enterprises.

Federal

Pertaining to a system of government where power is divided between a central authority and constituent political units (like states or provinces).

State

A politically organized body of people usually occupying a definite territory, especially one that is sovereign.

Liability Rule

A legal principle that governs how damages or losses are allocated in cases of harm or infringement, typically requiring compensation from the party at fault.