Question

A situation in which the broker mixes his personal funds with the other funds in his broker trust account is known as

1.) commingling (Answer)
2.) conspiracy
3.) fraud
4.) embezzlement

Answer 1

Commingling refers to the improper mixing of personal funds with trust funds, often leading to legal and ethical issues. In corporate crime, embezzlement is a form of misappropriation of funds.

Step-by-step explanation:

When a broker mixes his personal funds with other funds in the broker trust account, this is known as commingling. Commingling in the context of law is a breach of trust and, often, an ethical violation.

In regards to corporate crime, an example would be embezzlement, which involves the wrongful conversion of funds that have been entrusted to someone's care but are then taken for personal use.