SIE practice questionhardMarket Manipulation
A broker-dealer coordinates with another firm to submit identical orders at the same time in order to create the appearance of market interest. This action violates which of the following rules?
- ASEC anti-manipulation rules under the Securities Exchange Act of 1934✓ Correct answer
- BFDIC insurance rules
- CReg T margin requirements
- DFINRA continuing education rules
Explanation
Why A — SEC anti-manipulation rules under the Securities Exchange Act of 1934
This is market manipulation, prohibited by SEC anti-manipulation rules. FDIC (B) is unrelated to securities. Reg T (C) refers to margin. Continuing education (D) is unrelated.
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