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Answer: Disseminating false information on social media regarding the progress of a new product to influence market behavior.
**Explanation:** - **Option A** is incorrect because the intent behind the trade is to minimize tax liability, not to deceive market participants. Standard II(B) prohibits actions that distort prices or trading volumes with the intent to mislead. - **Option B** is correct because spreading misleading information about a new product is a form of information-based manipulation. This violates Standard II(B) as it aims to deceive market participants who rely on accurate information. - **Option C** is incorrect because order splitting for better execution is a legitimate trading practice and does not involve any intent to manipulate the market.
Author: LeetQuiz Editorial Team
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Which of the following actions by a CFA member most likely constitutes a violation of the Standard concerning market manipulation?
A
Executing a trade to sell one security and purchase another with the primary aim of reducing tax obligations.
B
Disseminating false information on social media regarding the progress of a new product to influence market behavior.
C
Breaking down a substantial order into multiple smaller orders to enhance trade execution efficiency.
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