Series 6 - Investment Company And Variable Contracts Products Representative Exam

Preview Mode

When a firm or any associated person has nonpublic knowledge of an impending block order to buy or sell, and that firm or person places an order ahead of the block order, it is called:

Churning
A
Interpositioning
B
Painting the tape
C
Front running
D

Explanations

Front running occurs when a firm or any associated that has nonpublic knowledge of an impending block order places an order in front of the block order.

Pricing