Explanation:
Keen has not violated the Standard relating to market manipulation because:
Trading Stock 1 at a profit: Selling Stock 1 at a profit is normal trading activity and does not constitute market manipulation.
Arbitrage trading of Stock 2: When Keen exploits price differences between two different exchanges for Stock 2, this is considered arbitrage, which is a legitimate trading strategy. Arbitrage involves buying and selling the same security in different markets to profit from price discrepancies, and it does not constitute market manipulation.
Market manipulation typically involves:
Since Keen's actions involve legitimate profit-taking and arbitrage strategies, no violation of market manipulation standards has occurred.
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few days later, Keen sells Stock 1 at a profit. One week later, Keen notices that Stock 2 is trading at different prices in two different exchanges. Keen buys and sells Stock 2 to exploit the difference in prices and makes a profit. Has Keen violated the Standard relating to market manipulation?
A
No
B
Yes, by trading Stock 1
C
Yes, by trading Stock 2