SIE practice questioneasySEC Antifraud Rules
Under SEC antifraud provisions, what is prohibited?
- AExecuting stop-limit orders
- BSelling exempt securities
- CRecommending mutual funds
- DMaking false statements to induce securities transactions✓ Correct answer
Explanation
Why D — Making false statements to induce securities transactions
SEC antifraud rules prohibit making false or misleading statements to induce trades. Selling exempt securities, recommending funds, or using order types are not inherently fraudulent.
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