Which of the following terms describes failure to honor a firm quote?
A.
Freeriding
B.
Backing away
C.
Interpositioning
D.
Market manipulation
The Answer Is:
B
This question includes an explanation.
Explanation:
Step by Step Explanation:
Backing Away: Refers to the failure of a market maker to honor a firm quote when a customer attempts to trade at that price. It is a violation of market rules.
Incorrect Options:
Freeriding: Involves selling securities before paying for them in a cash account.
Interpositioning: Involves unnecessary intermediaries in trades, which can harm customers.
Market Manipulation: Covers a range of deceptive practices, such as wash trading or spoofing, not specific to honoring quotes.