Which of the following instruments is covered by insider dealing regulations under the CJA?

Prepare for the CISI Regulatory Exam with engaging quizzes, detailed explanations, and tools to enhance understanding. Master regulatory frameworks and improve your readiness for a successful exam outcome!

The correct answer identifies debt instruments as being covered by insider dealing regulations under the Criminal Justice Act (CJA). Insider dealing refers to the practice of trading on the stock exchange to one's advantage through having access to confidential information. The regulations are designed to ensure fair trading practices and maintain market integrity.

Debt instruments, which include bonds, debentures, and other types of fixed-income securities, are subject to these insider trading laws because they are often traded in financial markets where non-public information about the issuing entity could influence their value. This could involve the financial condition of the issuer or material developments that could affect debt service obligations.

While commodities, insurance products, and unit trusts can also be influenced by insider information, they do not fall under the same stringent regulations as debt instruments in the context of the CJA. Thus, debt is the answer that aligns with the insider dealing regulations established to protect the fairness and transparency of financial markets.

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