SIE practice questionhardSEC Rules
A broker uses a series of small trades to avoid detection when manipulating a stock’s price. This is known as:
- AYield curve management
- BGood faith trading
- CSEC rule 144 trading
- DLayering or spoofing, prohibited under SEC anti-manipulation rules✓ Correct answer
Explanation
Why D — Layering or spoofing, prohibited under SEC anti-manipulation rules
Layering or spoofing uses orders or trading activity to mislead the market and manipulate price. Good-faith trading and Rule 144 transactions are unrelated, and yield curve management is a macroeconomic concept rather than a manipulation practice.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulatory Framework questions
- A registered representative opens multiple accounts under different names to conceal large purchases of a penny stock.…
- If a broker-dealer is found engaging in insider trading, the SEC may impose penalties that include:
- Which of the following is considered an 'insider' under SEC rules?
- Which action is prohibited under FINRA rules regarding customer accounts?
- Under SEC antifraud provisions, what is prohibited?
- A company executive tells a friend confidential information about a pending merger, and the friend buys company stock…
- According to MSRB rules, which activity is PROHIBITED for a municipal securities dealer?
- MSRB rules prohibit municipal securities dealers from which activity?