SIE (Securities Industry Essentials) Practice Exam 2025 - Free SIE Practice Questions and Study Guide

Question: 1 / 400

Agreements to repurchase shares at no less than the original sales price in a public offering are:

allowed under certain conditions

prohibited as fraudulent and manipulative

Agreements to repurchase shares at no less than the original sales price in a public offering are prohibited as fraudulent and manipulative. This is because such agreements can artificially inflate the market price and mislead investors. Options A, C, and D are incorrect because they do not address the potential fraudulent and manipulative nature of such agreements. While agreements may be allowed under certain conditions, it is still considered fraudulent and manipulative. Encouraging agreements to stabilize market price goes against regulations that aim to prevent market manipulation. The option of only permitting high-volume transactions still does not address the potential for market manipulation. Option B is the most correct and comprehensive answer.

Get further explanation with Examzify DeepDiveBeta

encouraged to stabilize market price

only permitted for high-volume transactions

Next Question

Report this question

Download SIE (Securities Industry Essentials) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy