Ethical and Professional Standards Q113

0. Weinberg Inc., a global asset management company, has a large position in Wessner Pharma. The trading volume of this stock is low. In order to boost the liquidity of the stock, multiple trading desks at Weinburg start buying and selling Wessner shares from each other. The CFA Institute Standard most likely violated by Weinberg is:

Answer
Comment
Array

Option : A
Explanation : Refer to Standard II(B) Market Manipulation. Weinberg created an appearance of greater liquidity of stock through its trading strategy and was able to manipulate the market.

Forgot your password?

I agree with the Terms.