Reading 2-II: Standards of Professional Conduct & Guidanc 2011, position, decided, center, Steve

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Session 1: Ethical and Professional Standards
Reading 2-II: Standards of Professional Conduct & Guidance: Integrity of Capital Markets

LOS B.: Market Manipulation.

 

 

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

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

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

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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.

zgh1988

is anyone taking Level I in New York  ???

jyzhou2

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geniealice

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#3

qhdblue

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coladad

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fanlanwu1989

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gaoflex

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luqian55

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tracylaubb

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