SIE practice questioneasyMarket Manipulation
Placing a series of buy and sell orders with no intent to change ownership, to give the appearance of trading activity, is known as:
- AClosed-end trading
- BOption hedging
- CWash trading✓ Correct answer
- DDay trading
Explanation
Why C — Wash trading
Wash trading involves buying and selling to create fake market activity. Option hedging is a legitimate risk strategy; closed-end trading is not manipulative; day trading refers to buying and selling in the same day for profit.
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