SIE practice questionhardFront-Running in Brokerage Accounts
A registered rep enters personal trades in advance of customer block orders in the same security. This is known as:
- ASelling away
- BInsider trading
- CFront-running✓ Correct answer
- DBreakpoint selling
Explanation
Why C — Front-running
Front-running is unethical and illegal. Insider trading uses nonpublic info. Selling away and breakpoint selling are different violations.
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