According to the Uniform Securities Act, which of the following is an example of market manipulation? A) Omitting material facts in a presentation. B) Guaranteeing performance of a security. C) Transactions in excess of a customer's financial capability. D) Creating the illusion of active trading.

Question

Social Studies

Noah Galvan

12 April, 13:52

According to the Uniform Securities Act, which of the following is an example of market manipulation? A) Omitting material facts in a presentation. B) Guaranteeing performance of a security. C) Transactions in excess of a customer's financial capability. D) Creating the illusion of active trading.

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Answers (1)

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Kathleen Fitzgerald · Answer 1

(D) Creating the illusion of active trading.

Explanation:

Market manipulation is when someone deliberately and artificially meddle with and influence the market's system by causing inflation or deflation in security, products or currency.

The illusion of active trading is the tendency for traders to think that they have more control not knowing that the market operation is manipulated by creating an illusion of active trading.