SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 56
Question: 56
Which of the following prevents persons involved with a securities offering from artificially influencing the price?
Correct Answer: B
Explanation:
B: Choice B is correct because Regulation M helps ensure the market price of a public offering is based on supply and demand, rather than persons involved in promoting the issue unfairly manipulating the market price artificially. Choices A, C, and D are incorrect because these do not prohibit persons involved with a public offering from manipulating the market price.
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