SIE practice questionmediumMarket Manipulation
Spreading false rumors to artificially affect a stock’s price is an example of:
- AMarket making
- BMarket manipulation✓ Correct answer
- CArbitrage
- DSyndicate trading
Explanation
Why B — Market manipulation
Market manipulation includes spreading false information to impact prices. Market making is providing liquidity; arbitrage exploits price differences; syndicate trading is about underwriting.
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