SIE practice questionmediumMarket Manipulation - Wash Sales
A wash sale for the purpose of market manipulation involves:
- ASelling a security at a loss to claim a tax benefit
- BCreating trades that result in no real change in ownership✓ Correct answer
- CSelling and immediately buying back in a retirement account
- DShort-selling with the intent to cover late
Explanation
Why B — Creating trades that result in no real change in ownership
Market manipulation wash sales are transactions that create false trading activity without real ownership change. Tax wash sales concern deductions but not market manipulation. Retirement accounts and short-selling in this context are unrelated.
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