SIE practice questionhardFront-Running
A registered representative executes personal trades ahead of a large client order to profit from the expected price movement. This is known as:
- AFront-running✓ Correct answer
- BInsider trading
- CChurning
- DManipulation
Explanation
Why A — Front-running
Front-running is executing trades before a client order for personal gain. Insider trading involves non-public information. Churning is excessive trading. Manipulation is broader market misconduct.
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