SIE practice questionmediumFront-Running
Front-running is best described as:
- ADisseminating false rumors
- BDelaying customer orders until the price is favorable
- CPublishing misleading research reports
- DEntering trades for personal benefit ahead of customer orders✓ Correct answer
Explanation
Why D — Entering trades for personal benefit ahead of customer orders
Front-running means trading ahead of client orders for personal gain. Delaying orders, false research, or rumors are different types of misconduct.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Prohibited Activities & Ethics questions
- Which of the following is considered market manipulation?
- A company executive learns nonpublic, material information about a pending merger and trades shares. This is a…
- A non-employee receives material, nonpublic information from an insider and trades on it. Under the law:
- A registered representative executes personal trades ahead of a large client order to profit from the expected price…
- An employee at a public company buys shares based on confidential earnings information not yet released to the public.…
- Spreading false rumors to artificially affect a stock’s price is an example of:
- A registered representative learns a large institutional client will place a substantial buy order. The representative…
- A broker learns material, non-public information about an issuer through a client and executes trades for both the firm…