SIE Exam Question 519: Answer and Explanation

Question: 519

An investor gets advance notice of a research report being issued and enters an order to purchase the security that is the subject of the research report. This is known as:

• A. Trading ahead.
• B. Advance trading.
• C. Insider trading.
• D. Front running.

Correct Answer: A

Explanation:

A: This is a violation known as trading ahead.