hard · Market Microstructure
A floor broker receives a client order to buy 50,000 shares. The broker first buys 2,000 shares for his personal account, then executes the client's order, which pushes the price up by $0.15. The broker then sells his 2,000 shares at the higher price. This illegal practice is known as:
- Wash Trading
- Spoofing
- Churning
- Front-running
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