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.
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 Prohibited Activities & Ethics questions
- Painting the tape refers to which prohibited market activity?
- An agent executes trades between two controlled accounts to create artificial trading volume. What is this practice…
- Under the law, which of the following is required for a person to be guilty of insider trading?
- A broker-dealer learns material nonpublic information about a company in a client account. Which action is REQUIRED…
- A broker learns that a customer is placing a large buy order, and buys shares for their own account just before…
- A registered representative trades a stock after learning material, non-public information from a client. Which law is…
- Which of the following is an example of market manipulation prohibited by the SEC?
- What is the primary regulatory concern with 'painting the tape'?