SIE (Securities Industry Essentials) Practice Exam

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Dani has been convicted of insider trading causing $8 million worth of damages. What is the maximum her firm can be fined?

$5 million
$10 million
$25 million
$50 million

The correct answer is: $25 million

If Dani has been convicted of insider trading causing $8 million worth of damages, the maximum her firm can be fined is $25 million. This is because the maximum fine for insider trading is three times the amount of the profits gained or the losses avoided, whichever is greater. In this scenario, the profits gained or losses avoided would be $8 million, so the maximum fine would be $24 million, which rounds up to $25 million. Options A, B, and D are all lower than this maximum amount, so they are incorrect.