About This Chapter
Prohibited Activities in the Financial Industry - Chapter Summary
Engaging lessons in this chapter are designed to quickly boost your comprehension of various prohibited financial industry activities. Learn about or get reacquainted with market manipulation, securities fraud and insider trading with help from our expert instructors. Completing this chapter will prepare you to do the following:
- Define and describe forms of market manipulation
- Discuss regulations and penalties associated with securities fraud and insider trading
- Describe parties and disclosures related to insider trading
Tailor your study of this chapter based on your personal schedule and current understanding of lesson concepts. Navigate the lessons in any sequence, visit as often as you'd like and study during the timeframes you choose, thanks to around-the-clock computer and mobile access. If you need any help grasping specific concepts, be sure to stop by the dashboard where you can submit questions to our experts. When ready, check your knowledge of this chapter by taking mini quizzes and a practice exam.
1. What is Market Manipulation?
In this lesson, we will discuss individuals who knowingly attempt to influence the market using false or misleading information about the price of securities or commodities. This is known as market manipulation.
2. Forms of Market Manipulation: Definitions & Examples
This lesson goes over market manipulations. You'll learn what these are before diving into several of them in more detail in order to appreciate how they work in real life.
3. Securities Fraud & Insider Trading: Definition, Regulations & Penalty
Securities fraud or insider trading is illegally trading stock on the open market using confidential information. It is usually done to gain an advantage over other traders.
4. Prohibited Investment Activities: Types & Examples
Investors entrust financial advisers to act in their best interest in important matters such as saving for a home purchase, retirement, or a child's educational expenses. To avoid abusing this trust, there are regulations in place. In this lesson, we'll overview some of the prohibited activities.
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Other chapters within the SIE Exam Study Guide course
- Federal Laws & Regulations in the Securities Industry
- Regulatory Entities & Agencies
- Market Participants & Structure
- Federal Reserve & Market Impacts
- Economic Factors
- Equity Securities
- Debt Instruments
- Options in the Financial Industry
- Investment Companies & Packaged Products
- Municipal Fund Securities
- DPPs, REITs & Hedge Funds
- Exchange-Traded Products (ETPs)
- Overview of Investment Risks
- Trading Orders & Strategies
- Investment Returns & Trade Settlement
- Corporate Actions
- Customer Account Types & Registrations
- Anti-Money Laundering (AML)
- Books, Records & Privacy in Finance
- Public Communications & Suitability Requirements
- Regulatory Framework in the Security Industry