SIE practice questionhardProhibited Activities
A broker-dealer attempts to inflate a security’s end-of-day price by placing trades minutes before the market closes. What is this called?
- AInsider trading
- BChurning
- CMarking the close✓ Correct answer
- DSelling away
Explanation
Why C — Marking the close
Marking the close is illegal price manipulation at the end of trading. Churning is excessive trading, insider trading is using nonpublic info, and selling away is selling outside firm products.
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