SIE practice questioneasySEC Enforcement
Which of the following is the SEC LEAST likely to consider a violation?
- ATrading after receiving a merger tip before public announcement
- BBuying shares after a public earnings release✓ Correct answer
- CParticipating in a pump-and-dump scheme
- DEngaging in wash sales
Explanation
Why B — Buying shares after a public earnings release
Trading on public information is legal. The other choices all involve activities the SEC considers violations: insider trading, market manipulation, and wash sales.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulatory Framework questions
- Which activity would most likely trigger an SEC investigation for market manipulation?
- A municipal securities dealer manipulates prices in the secondary market for a municipal bond. What regulation is being…
- A firm consistently executes customer orders at prices less favorable than those available in the market, without…
- Trading securities based on material, nonpublic information is prohibited by which agency?