RegulationsPregunta 52 de 110
A representative learns that an institutional customer is about to place a very large buy order and immediately buys the same security for a personal account. This is:
a.Permitted, because personal trades are unrelated to customer business
b.Permitted if the representative discloses the trade to a supervisor afterward
c.Permitted if the personal order is smaller than the customer's order
d.Front-running, a prohibited practice and a form of market abuse
Explicación
Trading ahead of a customer's known block order to profit from the expected price move misuses confidential customer information and is prohibited regardless of size or after-the-fact disclosure. The prohibition applies to accounts in which the representative has any beneficial interest. Supervisors cannot bless conduct that is itself a violation.
Referencia Legal: Securities Exchange Act of 1934Practica las 110 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- Breakpoint selling is best defined as:
- A representative repeatedly redeems a customer's shares in one fund family and reinvests the proceeds in a similar fund at another family, generating a new sales charge each time. This practice is called:
- Urging a customer to buy fund shares immediately so the customer can "capture" an upcoming distribution is prohibited because:
- A customer is nervous about market volatility and the representative offers to personally reimburse any losses in the first year. This offer is:
- A registered representative may share in the profits and losses of a customer's account only if:
- A representative tells a prospect, "Buy this fund before Friday's record date so you get the $0.40 per share distribution for free." This statement is:
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con FINRA Series 6 — Investment Company & Variable Contracts Rep · Cómo revisamos