SIE practice questionhardOrder Types - Prohibited Activities
An agent enters a client’s stop order at a price specifically chosen to be easily triggered for personal benefit. This constitutes:
- AA protected limit order
- BMarket manipulation and a violation of ethical standards✓ Correct answer
- CA hedging strategy
- DPermitted trade execution
Explanation
Why B — Market manipulation and a violation of ethical standards
Intentionally placing orders for personal benefit at the client’s expense is manipulative and violates ethical standards. Limit orders, hedging, and standard execution do not involve intentional harm.
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