Q1.Steve Waters, a CFA Level I candidate, has decided to enter into a long position of Farmco stock. Since Farmco is thinly traded, Waters is concerned the order will overwhelm the liquidity of Farmco and the price will surge. Waters engages in a series of block trades in order to accomplish the purchase. According to Standard II(B), Market Manipulation, Waters has engaged in:

A)   transaction-based manipulation, but not information-based manipulation.

B)   neither transaction-based manipulation nor information-based manipulation.

C)   both transaction-based manipulation and information-based manipulation.

Q2.Mark Williamson is “bearish” on ABC Manufacturing Company. Williamson is so convinced that ABC is overpriced, two weeks ago, he shorted 100,000 shares. Today, Williamson is “surfing” several popular investment bulletin boards on the internet and posting false derogatory comments about company management. According to Standard II(B), Market Manipulation, Williamson has engaged in:

A)   transaction-based manipulation, but not information-based manipulation.

B)   information-based manipulation, but not transaction-based manipulation.

C)   both transaction-based manipulation and information-based manipulation.

Q3.All of the following are violations of Standard II(B), Market Manipulation, EXCEPT:

A)   securing a controlling interest in an equity security in order to influence the price of a related derivative instrument.

B)   disseminating misleading information about the development of new products and technologies.

C)   exploiting differences in market inefficiencies.

答案和详解如下：

Q1.Steve Waters, a CFA Level I candidate, has decided to enter into a long position of Farmco stock. Since Farmco is thinly traded, Waters is concerned the order will overwhelm the liquidity of Farmco and the price will surge. Waters engages in a series of block trades in order to accomplish the purchase. According to Standard II(B), Market Manipulation, Waters has engaged in:

A)   transaction-based manipulation, but not information-based manipulation.

B)   neither transaction-based manipulation nor information-based manipulation.

C)   both transaction-based manipulation and information-based manipulation.

Correct answer is B)

Waters is not in violation of Standard II(B), Market Manipulation. Transaction-based manipulation includes, but is not limited to, transactions that artificially distort prices or volume. Information-based manipulation includes, but is not limited to, spreading false rumors about a firm in order to induce others to trade.

Q2.Mark Williamson is “bearish” on ABC Manufacturing Company. Williamson is so convinced that ABC is overpriced, two weeks ago, he shorted 100,000 shares. Today, Williamson is “surfing” several popular investment bulletin boards on the internet and posting false derogatory comments about company management. According to Standard II(B), Market Manipulation, Williamson has engaged in:

A)   transaction-based manipulation, but not information-based manipulation.

B)   information-based manipulation, but not transaction-based manipulation.

C)   both transaction-based manipulation and information-based manipulation.

Correct answer is B)         

Williamson is in violation of Standard II(B), Market Manipulation, by engaging in information-based manipulation. Information-based manipulation includes, but is not limited to, spreading false rumors about a firm in order to induce others to trade.

Q3.All of the following are violations of Standard II(B), Market Manipulation, EXCEPT:

A)   securing a controlling interest in an equity security in order to influence the price of a related derivative instrument.

B)   disseminating misleading information about the development of new products and technologies.

C)   exploiting differences in market inefficiencies.

Correct answer is C)

abc

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