A Financial Intermediary Who,through Deceit or Fraudulent Means,affects the Public

question 54

Multiple Choice

A financial intermediary who,through deceit or fraudulent means,affects the public market price of securities can face a maximum of

• A)a monetary fine of three times the loss avoided or gain received.
• B)two years less a day in custody of a provincial institution.
• C)five years imprisonment in a federal penitentiary.
• D)ten years imprisonment in a federal penitentiary.
• E)both a and b.

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Definitions:

Covered Interest Arbitrage

An investment strategy that involves exchanging domestic currency for a foreign currency, investing in foreign interest-bearing assets, and using forward contracts to hedge exchange rate risk.

Forward Contract

A special arrangement made between two parties to transact an asset at a pre-agreed price on a set date in the future.

Exchange Currency

The act of converting one country's currency into another, often subject to an exchange rate.