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/spoofing uses multiple trades to mislead the market, violating anti-manipulation rules. Good faith (B) and Rule 144 (C) are unrelated. Yield curve (D) is macroeconomic.
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