What can result from engaging in fraudulent trading?

Engaging in fraudulent trading can lead to severe legal repercussions, including a fine or imprisonment for up to 10 years. This stems from the serious nature of fraudulent activities in trading, which undermine market integrity and can result in significant financial losses for investors and other parties. The law imposes strict penalties to deter such misconduct and maintain confidence in the financial markets.

The potential for a lengthy prison sentence reflects the gravity with which legal systems treat fraudulent trading. It serves as a strong warning that individuals who partake in deceitful practices will face substantial consequences. This aligns with the broader objective of enforcing compliance with trade regulations to protect both the market and public trust.

Other potential consequences of fraudulent trading, like civil penalties or warnings, may also exist but do not carry the same degree of severity as criminal charges, which can involve custodial sentences. Similarly, director disqualification is a possibility but primarily pertains to the ability to serve in governance roles rather than direct criminal penalties related to fraudulent activities. Thus, the option indicating fine or imprisonment stands out as the most fitting consequence of engaging in fraudulent trading.