exam questions

Exam Series 63 All Questions

View all questions & answers for the Series 63 exam

Exam Series 63 topic 1 question 232 discussion

Actual exam question from FINRA's Series 63
Question #: 232
Topic #: 1
[All Series 63 Questions]

Painting the tape refers to -

  • A. the practice of buying large amounts of a security to drive its price up artificially.
  • B. the illegal activity of a group of investors who buy and sell a security among themselves to create an artificially high volume of trading in hopes of luring investors to buy the security.
  • C. the prohibited practice of excessively trading on a client's account that is used by some broker-dealers and/or their agents to generate more commissions for themselves.
  • D. the unethical practice of investment advisers who issue "buy" recommendations for stocks that they own themselves without disclosing the fact.
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
Painting the tape refers to the illegal activity of a group of investors who buy and sell a security among themselves to create an artificially high volume of trading in hopes of luring investors to buy the security. This is an attempt to manipulate the market and, as such, is illegal.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Currently there are no comments in this discussion, be the first to comment!
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...