SIE practice questionhardMarking the Close
Placing trades near the close of the market specifically to influence the closing price of a security is known as:
- AMarking the close✓ Correct answer
- BAfter-hours trading
- CLate trading
- DDark pool execution
Explanation
Why A — Marking the close
Marking the close is a form of market manipulation where trades are placed near the end of the trading day to artificially influence the closing price. After-hours trading can be legitimate trading after the close, and late trading refers to improper mutual fund trading after NAV calculation.
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