SIE practice questioneasyMSRB Rules - Prohibited Conduct
According to MSRB rules, which activity is PROHIBITED for a municipal securities dealer?
- ADisclosing trade data to EMMA
- BActing as a principal in a customer’s order
- CIntentionally inflating the price to benefit the firm✓ Correct answer
- DOffering new municipal bonds with an official statement
Explanation
Why C — Intentionally inflating the price to benefit the firm
Intentionally inflating prices is market manipulation, which is prohibited under MSRB rules. Acting as a principal, EMMA disclosures, and official statements are compliant actions.
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