SIE practice questionmediumMarket Manipulation
Which of the following is an example of a matched order?
- AAn investor buys a security on margin.
- BTwo parties arrange trades to artificially increase activity without an actual change in ownership.✓ Correct answer
- CA broker executes a client’s order at the best available price.
- DA mutual fund rebalances its portfolio.
Explanation
Why B — Two parties arrange trades to artificially increase activity without an actual change in ownership.
Matched orders involve two parties colluding to trade solely for volume appearance, not for ownership changes. B, C, and D are legitimate activities.
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