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.
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