SIE practice questionmediumSecurities Exchange Act of 1934
Which of the following is a prohibited manipulative practice under the Securities Exchange Act of 1934?
- ADollar-cost averaging
- BMatched orders✓ Correct answer
- CRebalancing
- DPortfolio diversification
Explanation
Why B — Matched orders
Matched orders (coordinated buying and selling to create false activity) are prohibited. The other choices are legitimate investment strategies.
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