A White-Collar Crime in Which a Stockbroker Makes Repeated Trades

question 81

Multiple Choice

A white-collar crime in which a stockbroker makes repeated trades with a client's account in order to fraudulently increase his or her commissions is known as:

• A) chiseling.
• B) churning.
• C) front running.
• D) bucketing.

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Definitions:

Agent

An individual authorized to act on behalf of another person or entity, often in a business setting.

Liability

A legal obligation or debt that an entity is bound to fulfill towards another party.

Employer's Liability

Legal responsibility of an employer for injuries, illnesses, or damages suffered by employees as a result of their employment.

Respondeat Superior

A legal principle stating that an employer or principal is legally liable for the wrongful actions of an employee or agent, provided these actions happened in the course of their employment or agency.