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Answer: Action 1 and Action 2 only
**Explanation:** **Action 1:** Entering large buy and sell trades between multiple proprietary accounts of the firm with the intent to increase trading volume - This violates market manipulation standards. This is known as "wash trading" or "churning," where trades are executed to create artificial trading volume without any real change in beneficial ownership. The intent to increase trading volume artificially is a clear violation. **Action 2:** Securing a dominant position in a financial instrument with an intent to influence the price of a related derivative - This violates market manipulation standards. This is known as "cornering the market" or creating an artificial price. By securing a dominant position with the specific intent to influence prices, this constitutes market manipulation. **Action 3:** Exploiting perceived market inefficiencies through aggressive trading strategies - This does NOT violate market manipulation standards. Aggressive trading to exploit market inefficiencies is legitimate market activity, as long as it doesn't involve deceptive practices or artificial price creation. This is simply taking advantage of market opportunities. Therefore, only Actions 1 and 2 violate market manipulation standards, making option A the correct answer.
Author: LeetQuiz .
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Which of the following actions violate the Standard relating to market manipulation?
A
Action 1 and Action 2 only
B
Action 1 and Action 3 only
C
Action 2 and Action 3 only