SIE practice questionmediumFront-Running
A registered representative buys shares of a stock for their own account just before executing a large client order. What is this called?
- ASyndicate allocation
- BMarket making
- CFront-running✓ Correct answer
- DSelling away
Explanation
Why C — Front-running
Front-running is illegal—trading ahead of client orders. Market making is providing liquidity; syndicate allocation and selling away 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.
Related Prohibited Activities & Ethics questions
- An individual spreads false positive rumors to inflate a stock’s price and then sells their shares. What is this scheme…
- A broker-dealer enters orders to create the appearance of active trading in a security. What is this practice called?
- A broker learns material, non-public information about an issuer through a client and executes trades for both the firm…
- Which activity is an example of illegal insider trading?