Business Practices第 65 / 100 题
Two traders repeatedly buy and sell the same thinly traded security between themselves at rising prices to attract outside buyers. This conduct is:
a.Legitimate market making
b.Permitted because both parties consented
c.Market manipulation through matched orders creating misleading activity, which is prohibited
d.Permitted if the trades are reported to the tape
解析
Wash sales and matched orders create the false appearance of trading volume and price movement and are prohibited manipulative practices. Consent between the participants is irrelevant because the deception targets the investing public. Reporting the trades does not legitimize them, and genuine market making involves bona fide two-sided quotations rather than prearranged trades with no change in beneficial ownership.
法律依据: Uniform Securities Act免费刷完整 100 道题库 — 无需注册。
同考点相关题目
- An agent is short of cash and asks a wealthy retail client for a $20,000 personal loan, promising repayment with interest. Under NASAA rules this is:
- An agent arranges private investments in a real estate partnership for several clients, collects a finder's fee directly from the sponsor, and never mentions the activity to his broker-dealer. This is:
- An agent tells a prospect, 'My state registration means the Administrator has reviewed my qualifications and approved the investments I recommend.' This statement is:
- Before recommending a security to a new customer, an agent must:
- Which statement best distinguishes the duties of an investment adviser from those of a broker-dealer effecting transactions for a customer?
- A broker-dealer sells a customer bonds out of the firm's own inventory. Which disclosure obligation applies?