When a Securities Professional Buys and Sells Excessive Amounts of Stock

question 190

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) insider trading
• C) dealing
• D) scalping
• E) none of the other choices

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Definitions:

Aggregate Expenditure

The total amount of spending in the economy that includes consumption, investment, government spending, and net exports.

Consumption

The use of goods and services by households, constituting one of the major components of gross domestic product (GDP).

Planned Investment

Expenditures that businesses intend to make for the purposes of capital improvements, equipment, or inventory.

Imports

Goods and services purchased from foreign producers by a country’s residents.