Series 63: Exercise

Exercise

Match each term to the appropriate securities violation

1. A. Insider trading
2. B. Selling away
3. C. Improper outside business activity
4. D. Market manipulation
5. E. No violation occurred
6. 1. _ Two agents who work at the same firm enter an agreement in which one agent buys 100 shares of a security at $100, while another agent sells 100 shares of the same security at $100.
7. 2. _ A client is made aware of material non-public information about a specific security and, as a result, buys shares of that security the following day.
8. 3. _ An agent sells securities to a client that are not are not sold by his firm outside his firm’s knowledge.
9. 4. _ An agent makes trades in an account with another firm without notifying her employing firm.
10. 5. _ An officer of a publicly-traded company tells an investment adviser that the production of a much publicized product may not occur as originally planned.

Answers

1. 1. D. Intentionally entering identical and opposite trades for the same security in order to create a false sense of trading activity is a mode of