Answered

Which of the following describes securities fraud?

A. The artificial inflation of a stock price by brokers so individuals will believe they are buying stocks on the rise.
B. When an individual promises to gain large returns on a small investment as a ploy to steal money.
C. The illegal tampering or unauthorized use of a cellular phone.
D. The investment or transfer of money gained through illegal activity that is made to appear legitimate.



Answer :

GinnyAnswer

Final answer:

Securities fraud encompasses deceptive practices like insider trading and false profit claims, resulting in significant financial harm.


Explanation:

Securities fraud involves deceptive practices within the financial markets, such as insider trading or misleading investors to manipulate stock prices. Examples include Ponzi schemes like the Bernie Madoff case and the Enron scandal, where executives falsified profits leading to financial losses.


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