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delete 131 Spoofing (15 points). Spoofing can be defined as: (a) Placing flash o

ID: 2827280 • Letter: D

Question

delete 131 Spoofing (15 points). Spoofing can be defined as: (a) Placing flash orders to force buyers to reveal their price limits, while having previously taken a short' position in financial markets (b) Placing flash sell orders to create a false sensation of pessimism and lower stock prices, while having previously taken a "long' position in financial markets shift (c) Placing flash buy orders to create a false sensation of optimism and higher stock prices, while having previously taken a 'long' position in financial markets. (d) Placing flash orders to force sellers to reveal their price limits, while having previously taken a long' position in financial markets. (e) Placing flash buy orders to create a false sensation of optimism and higher stock prices, while having previously taken a short' position in financial markets. (17 Placing flash sell orders to create a false sensation of pessimism and lower stock prices, while having previously taken a 'short' position in financial markets.

Explanation / Answer

Answer: e

This is the market manipulation in which a market sensation is created by increasing stock prices. If it is done a ‘short’ may turn into a ‘long’, means holders of stock for short period may keep stocks for long periods in the hope of more earnings in future. In the mean time the buyer cancels the order.