Other Trading Practices Reaching Customer Orders

What this video covers

• How a designated security is an NMS stock, why listed options are NMS securities but not NMS stocks, and why that distinction matters for six of the seven prohibitions
• The three prohibited purposes behind purchases at successively higher prices or sales at successively lower prices, and why participation in the account can be enough
• How no-change-in-beneficial-ownership transactions and matched buy or sell orders create a false appearance of activity
• How excessive trading is measured against the member's financial resources or the market for the security
• Why reasonable grounds to believe information is false can trigger the false or misleading statements prohibition, and why a closing-price offer requires no execution
• The difference between a direct or indirect profit interest in a manipulative operation and knowingly managing or financing one
• Why joint accounts are not automatically banned, plus the four items required in a prompt report to the Financial Industry Regulatory Authority (FINRA)