Answer-first summary for fast verification
Answer: No
## Explanation Keen has **not violated** the Standard relating to market manipulation because: 1. **Trading Stock 1 at a profit**: Selling Stock 1 at a profit is normal trading activity and does not constitute market manipulation. 2. **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: - Intentional distortion of prices - Creating artificial trading activity - Spreading false information - Wash trading - Other deceptive practices Since Keen's actions involve legitimate profit-taking and arbitrage strategies, no violation of market manipulation standards has occurred.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
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
No comments yet.