SIE practice questionhardProhibited Activities - Marking the Close
Just before market close, a trader enters a series of buy orders solely to boost the closing price of a stock and benefit from reporting higher values. This is an example of:
- ALegitimate rebalancing
- BSetting opening prices
- CMarket-on-close order execution
- DMarking the close, a prohibited market manipulation strategy✓ Correct answer
Explanation
Why D — Marking the close, a prohibited market manipulation strategy
Marking the close is illegal because it distorts closing prices for reporting or valuation. Legitimate order types, opening price setting, and rebalancing are not manipulative when done properly.
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