Civil Money Penalty - CMP

AAA

DEFINITION of 'Civil Money Penalty - CMP'

A punitive fine imposed by a civil court on an entity that has profited from illegal or unethical activity. The Securities and Exchange Commission imposes civil money penalties that are usually equal to the gains made from whatever activity it has deemed to be illegal or unethical.

INVESTOPEDIA EXPLAINS 'Civil Money Penalty - CMP'

Civil money penalties are not limited to securities law violations. They may be imposed to punish individuals or organizations for violating a variety of laws or regulations.

RELATED TERMS
  1. Tort Law

    The area of law that covers the majority of all civil lawsuits. ...
  2. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  3. Forensic Accounting

    Forensic Accounting utilizes accounting, auditing, and investigative ...
  4. Insider Trading

    The buying or selling of a security by someone who has access ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Disgorgement

    A repayment of ill-gotten gains that is imposed on wrong-doers ...
Related Articles
  1. Handcuffs And Smoking Guns: The Criminal ...
    Options & Futures

    Handcuffs And Smoking Guns: The Criminal ...

  2. Defining Illegal Insider Trading
    Economics

    Defining Illegal Insider Trading

  3. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  4. What happens to the fines collected ...
    Investing

    What happens to the fines collected ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center