SIE practice questionhardProhibited Activities
A broker excessively buys and sells in a client’s account solely to generate commissions. This is known as:
- ABest execution
- BFront-running
- CInsider trading
- DChurning✓ Correct answer
Explanation
Why D — Churning
Churning is excessive trading for commissions. Front-running and insider trading are different violations. Best execution is about trade quality.
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