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.
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