SIE practice questionmediumMarket Manipulation
Which of the following practices is LEAST likely to be viewed as market manipulation?
- AWash sales to generate activity
- BA market maker providing liquidity at published prices✓ Correct answer
- CMatched orders between affiliates
- DSpreading false rumors to affect prices
Explanation
Why B — A market maker providing liquidity at published prices
Market makers facilitating trades at quoted prices is legitimate and not manipulation. Wash sales, matched orders, and spreading rumors are all manipulative practices.
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