Unethical Practices

Question 1

A manipulative act designed to keep a stock price from rising or to keep the price down

Answer 1

Capping

Question 2

A manipulative act designed to keep a stock price up or to keep the price from falling

Answer 2

Pegging

Question 3

The entering of an order for the account of an agent or firm prior to the entering of a large customer order. The Firm or agent is using the customer’s order to profit on the order it has entered for its own account

Answer 3

Front running

Question 4

The entering of an order for Security based on prior knowledge of a soon-to-be-released research report

Answer 4

Trading ahead

Question 5

A manipulative act by two or more parties designed to create false activity in the security without any beneficial change in ownership. The increased activity is used to attract new buyers

Answer 5

Painting the tape