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SIE: Prohibited Activities & Ethics
SIE practice questionhardMarket Manipulation

A firm pays social media influencers to covertly promote stocks it owns without disclosure. This is:

  1. AIllegal stock promotion and market manipulation✓ Correct answer
  2. BA permitted advertising practice
  3. CAllowed if influencers have disclaimers
  4. DAcceptable under Regulation A+
Explanation

Why AIllegal stock promotion and market manipulation

Covert promotion without disclosure is manipulative and fraudulent. Disclaimers or Regulation A+ do not make deceptive practices legal.

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