Fraud, Market Manipulation, and Insider Trading: Rapid Fire
Chapters in this video
- 0:00 Zero exemptions: the antifraud foundation
- 1:34 Wash trades and matched orders
- 2:43 Front-running with Iris the investor
- 3:19 Spoofing, layering, and the intent to cancel
- 4:00 Insider trading: disclose or abstain
- 5:28 Selling away versus outside accounts
- 6:41 Vulnerable adults: mandatory report, permissive delay
- 8:35 Guarantees and half-truths are always banned
- 9:03 Rapid-fire exam recap
What this video covers
- Why the antifraud provisions apply to every security and every person with literally zero exemptions, including exempt securities and exempt transactions
- How wash trades differ from matched orders, and why a bona fide agency cross is the only permitted form of matched execution
- What front-running is: trading ahead of a pending customer order while in possession of material nonpublic information (MNPI)
- The intent-to-cancel test that separates legitimate limit orders from spoofing and layering violations
- Why the insider trading rule is disclose or abstain, and why both tipper and tippee face liability while mere possession without trading does not
- The critical distinction between selling away (prior written authorization required) and outside securities accounts (prior written notice only)
- The mandatory versus permissive steps under the NASAA Model Act for protecting vulnerable adults, plus the four numbers to lock in: 65, 2, 15, and 25
Read the full lesson, free
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