Which of the following statements is true of the criminal liability imposed as per the Securities Act of 1934?
A) Criminal liability is inapplicable in cases of false material statements in applications or reports.
B) Individuals found guilty of filing misleading documents are subject to maximum two years of imprisonment.
C) Individuals guilty of securities fraud may face a prison sentence of up to 25 years.
D) Business organizations found guilty of filing misleading documents have relaxed laws in comparison to individuals.
E) Regulating and imposing liabilities on trading on nonpublic information is beyond the scope of the act.

Question

Quizplus · Accepted Answer

The 1934 Act provides for criminal sanctions for willful violations of its provisions or the rules adopted under it. An individual guilty of securities fraud may face a prison sentence of up to 25 years. This increased sanction emphasizes the seriousness with which all businesspeople must treat compliance with securities regulations.

Which of the Following Statements Is True of the Criminal