SIE practice questioneasyMarket Manipulation - Matched Orders
Matched orders are best described as:
- ABuying and selling in different markets
- BUnintentional errors in order entry
- CCoordinating buy and sell orders to create artificial trading volume✓ Correct answer
- DExecuting market orders to ensure liquidity
Explanation
Why C — Coordinating buy and sell orders to create artificial trading volume
Matched orders involve colluding with others to buy and sell a security at the same time and price, creating a false appearance of activity. This is illegal. Errors and legitimate trading are not matched orders.
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