Answer: Both Activity 1 and Activity 2

According to **Standard II(B): Market Manipulation**, transaction-based manipulation includes actions that artificially affect prices or volume to create a misleading impression of activity or price movement in a financial instrument. This deviates from the expectations of a fair and efficient market. - **Activity 1** involves securing a dominant position in futures contracts to influence the price of the underlying asset, which violates the standard despite resulting in losses. The intent to manipulate the price is the critical factor. - **Activity 2** involves frequent trading of a stock in multiple client accounts with the intent to increase the stock's volume, which also violates the standard. The intent to manipulate volume is the key issue. Thus, both activities violate Standard II(B), making **Option C** the correct answer.

Author: LeetQuiz Editorial Team