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?
- ABreakpoint sales
- BFront-running✓ Correct answer
- CSelling away
- DCherry-picking
Explanation
Why B — Front-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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