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Up1
Allen Young, CFA, owns a 3% shareholder position in Valenti Graphics. Allen purchased a large number of Valenti call options in an attempt to increase the share price. Allen also started a false rumor online that Unitel is considering buying out Valenti Graphics. Allen is most likely in violation of CFA Institute Standard:
- By spreading the rumor
- By purchasing the options
- Both by purchasing the options and by spreading the rumor
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Up5
The correct answer is the one answered by @PassedTense 🙂
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Up5
The two primary market manipulations are transaction-based
and information-based. There is nothing illegal about purchasing a large number
of call options, so there is no violation there. By spreading false
information, Allen is guilty of information-based
manipulation. -
Up4
which one is the correct answer?
what does blue bar mean?
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