When a Securities Professional Buys and Sells Excessive Amounts of Stock

question 159

Multiple Choice

When a securities professional buys and sells excessive amounts of stock for a client's account to make extra-large commissions from the trades, she is:

• A) kiting
• B) churning
• C) dealing
• D) scalping
• E) none of the other choices

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Definitions:

Framing

The concept of how choices are presented or "framed" can significantly influence decision-making processes.

Value Signal

An indication or measure that suggests the economic worth or utility of a product, service, or asset to consumers.

Credible Signal

An action taken by a party to demonstrate its ability or intention in a way that can be trusted or believed by others.

Consistent Message

Communication that is uniform and remains the same across different platforms and over time, enhancing brand recognition and trust.