When a brokerage house knew or recklessly disregarded information that would indicate insider trading activities on the part of its employees:

Question

Quizplus · Accepted Answer

If a brokerage house knew or recklessly disregarded information that would indicate insider trading activities on the part of its employees, it may be fined by the SEC. The fines can be significant, ranging from hundreds of thousands to millions of dollars depending on the severity of the insider trading activities. The other choices are not accurate. The brokerage house may not necessarily have to fire the employees unless they are found to be involved in insider trading activities. The SEC may suspend or revoke the securities license of the brokerage house, but this is not the only consequence. And finally, communication via social media does not exempt the brokerage house from being sued for insider trading activities.

When a Brokerage House Knew or Recklessly Disregarded Information That