When the Securities Exchange Commission calculates illegal profits made in illicit trading activities, it includes illegally avoided losses in that total.

Question

Quizplus · Accepted Answer

The SEC considers both the gains from illegal trades and the losses avoided through such activities when calculating the total illicit profits for enforcement actions. Avoiding a loss through insider trading, for example, is effectively the same as making an illegal profit, as it unjustly benefits the trader based on non-public information.

When the Securities Exchange Commission Calculates Illegal Profits Made in Illicit