Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
Trading a security in such a way to make the volume artificially seem higher than it really is and creating an illusion of trading activity that may push up the price is called
Churning
A
Market timing
B
Interpositioning
C
Painting the tape
D
Explanations
Painting the tape is illegal and makes trading activity seem higher than it really is; in an effort to push up the price to sell the security later to unsuspecting investors.