easy · CFA Level I ethics

Kestrel Grid's portfolio manager executes several trades between two accounts under their control that result in no change in beneficial ownership. The primary purpose is to increase the reported daily volume of the stock. This is best described as:

  1. Wash trading, a violation of Standard II(B).
  2. A legitimate strategy to improve the liquidity of the shares.
  3. Internalization of orders, which is permitted under Fair Dealing.

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