Which Is the Correct Term for the Practice of an Owner

question 71

Multiple Choice

Which is the correct term for the practice of an owner of a particular stock telling other investors about the virtues of the stock, which artificially increases the demand for the stock and causes an increase in the price, only to sell it for a quick profit?

• A) Pumping and dumping
• B) Marketing and selling
• C) Pushing and pulling
• D) Increasing and decreasing
• E) Inflating and deflating

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Definitions:

Call Premium

The amount above the par value a bondholder receives if the issuer redeems a bond before its maturity date.

Semiannually

A term describing an action or event that occurs twice a year.

Semiannual Coupon

A bond or fixed-income security payment made to its holder twice a year as interest for the investment.

Coupon Rate

The interest rate stated on a bond or other fixed-income security that the issuer promises to pay the holder until maturity.