SIE practice questionmediumSEC Rules
Which activity would most likely trigger an SEC investigation for market manipulation?
- ASelling short with public disclosure
- BPurchasing for long-term investment
- CDollar-cost averaging
- DEngaging in a coordinated series of matched buys and sells to affect a stock’s price✓ Correct answer
Explanation
Why D — Engaging in a coordinated series of matched buys and sells to affect a stock’s price
Matched buying and selling to affect prices is market manipulation. Long-term investing, cost averaging, and disclosed short selling are permitted activities.
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