Q4. 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.

Q5. 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.

答案和详解如下：

Q4. 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)

Standard II(B), Market Manipulation, prohibits practices that distort prices or artificially inflate trading volumes with the intent to mislead market participants. The Standard is not intended to prohibit legitimate trading strategies that exploit differences in market inefficiencies.

Q5. 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.

Q4. All of the following are violations of Standard II(B), Market Manipulation, EXCEPT:

C)   exploiting differences in market inefficiencies.

Q5. 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:

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