SIE practice questionhardMarket Manipulation
A firm pays social media influencers to covertly promote stocks it owns without disclosure. This is:
- AIllegal stock promotion and market manipulation✓ Correct answer
- BA permitted advertising practice
- CAllowed if influencers have disclaimers
- DAcceptable under Regulation A+
Explanation
Why A — Illegal stock promotion and market manipulation
Covert promotion without disclosure is manipulative and fraudulent. Disclaimers or Regulation A+ do not make deceptive practices legal.
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.
Related Prohibited Activities & Ethics questions
- Anna, an employee at a public company, shares confidential financial results with her friend before they are announced.…
- A tippee uses material, nonpublic information obtained indirectly from a company insider to profit from trading.…
- A registered representative learns that a large institutional client is about to place a big purchase order and buys…
- A group of traders coordinate a series of matched orders to artificially inflate the trading volume and price of a…