Match each prohibited market practice or fraudulent activity with the scenario that best describes the regulatory violation.
- Free-ridingAn investor buys shares of stock in a cash account and subsequently sells them before submitting payment for the initial purchase.
- Painting the tapeA group of traders colludes to execute transactions among themselves to create a false impression of high trading volume and price momentum.
- InterpositioningA broker-dealer unnecessarily routes a customer order through a third-party firm, resulting in additional commission costs and inferior execution.
- Marking the closeA trader places multiple buy orders in the final minutes of the trading day to artificially inflate a security's official reported closing price.
Cevap
Free-riding matches purchasing shares in a cash account and selling prior to paying; Painting the tape matches collusive transactions to create false trading volume; Interpositioning matches unnecessarily routing a customer order through a third party; Marking the close matches placing trades at market end to alter the reported closing price.
Each prohibited practice corresponds directly to its FINRA and SEC regulatory classification. Free-riding involves buying and selling without making required cash payment. Painting the tape is collusive trading to fake market volume. Interpositioning is adding an unnecessary middleman broker to customer transactions. Marking the close is placing orders near the trading day's end to manipulate the published closing valuation.
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Anahtar Kavram
Prohibited Market Manipulation and Fraudulent Practices