SIE Exam Question 828: Answer and Explanation

Question: 828

Which of the following is a manipulative trading activity that is designed to prevent the price of a security from rising?

• A. Capping
• B. Front running
• C. Painting the tape
• D. Pegging

Correct Answer: A

Explanation:

Capping is a manipulative trading activity that is designed to prevent the price of a security from rising.