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SIE: Prohibited Activities & Ethics
SIE practice questioneasyFront-Running

An RR who buys a stock for themselves after learning of, but before executing, a customer’s large block order is engaging in what prohibited practice?

  1. ABreakpoint sales
  2. BFront-running✓ Correct answer
  3. CSelling away
  4. DCherry-picking
Explanation

Why BFront-running

Front-running is trading personal accounts ahead of customer orders to benefit from anticipated price movement. The other options refer to different violations.

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