SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Ace your Securities Industry Essentials (SIE) Exam with Examzify! Our practice exam features flashcards, multiple-choice questions with detailed explanations, and insightful tips to ensure your success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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.