SIE practice questionmediumOrder Types - Prohibited Activities
A registered rep places a client’s stop order in a way that intentionally triggers the stop and benefits the rep’s principal trading. This practice is:
- AAcceptable in volatile markets
- BNormal stop-order procedure
- CRequired for risk management
- DMarket manipulation and a violation of suitability rules✓ Correct answer
Explanation
Why D — Market manipulation and a violation of suitability rules
Manipulating order placement for personal gain violates both suitability and anti-manipulation rules. Normal procedures do not involve intentional triggering.
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