What does evidence of fraudulent activity in securities trading lead to?

Evidence of fraudulent activity in securities trading typically leads to potential criminal charges, fines, or both. This response arises because fraudulent behavior undermines the integrity of financial markets and violates various laws and regulations designed to protect investors and maintain fair trading practices. When such misconduct is identified, regulatory bodies, such as the Securities and Exchange Commission (SEC), and law enforcement agencies, may initiate investigations that can result in criminal charges against individuals or entities involved. This process serves as a means of enforcing accountability and deterring future fraudulent activities in the market.

The implications of fraud are serious, as they can damage investor trust, disrupt market operations, and result in severe penalties for wrongdoers to uphold market integrity. Thus, the correct answer highlights the serious legal repercussions associated with fraudulent securities trading.