SIE practice questionhardSecurities Exchange Act of 1934 - Manipulative Devices
Under the Exchange Act of 1934, an example of a prohibited manipulative device is:
- ACoordinating trades to artificially affect securities prices✓ Correct answer
- BOffering competitive interest rates
- CReporting trades to the tape in real time
- DCharging commissions according to published schedules
Explanation
Why A — Coordinating trades to artificially affect securities prices
The 1934 Act bars manipulative devices like matched orders to distort prices. Offering rates, timely reporting, and transparent commissions are all legitimate activities.
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