SIE practice questionmediumInsider Trading
A registered representative trades a stock based on nonpublic information about a company's upcoming merger. This action constitutes:
- AInsider trading✓ Correct answer
- BFront-running
- CBest execution
- DChurning
Explanation
Why A — Insider trading
Trading on material, nonpublic information is insider trading. Front-running is trading ahead of a client; best execution is unrelated; churning is excessive trading.
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