SIE practice questioneasyProhibited Activities - Trades for Own Account
A registered representative executes trades for his own account before those of customers based on advance customer orders. This action is called:
- AFront-running, a prohibited practice✓ Correct answer
- BBlock trading
- CMarket stabilization
- DCustomer facilitation
Explanation
Why A — Front-running, a prohibited practice
Front-running is when someone trades ahead of a known large customer order for personal benefit. Block trading, stabilization, and customer facilitation are not inherently abusive.
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