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.
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 Trading & Settlement questions
- A margin account drops below maintenance requirement and the client does not meet the margin call. The broker-dealer:
- A customer fails to pay for a stock purchase in a cash account within the required period. Under Regulation T, the…
- An agent enters a client’s stop order at a price specifically chosen to be easily triggered for personal benefit. This…
- A registered rep guarantees a client that the yield curve will predict a stock’s price every time. This statement is: