如题

问题如下：

Olsen recognizes institutional clients may be apprehensive about investing in developing markets because of their lack of understanding of what constitutes market manipulation or an assumption that market manipulation cannot be detected.

He concludes that it may be effective to highlight Maybridge’s ability to identify true attempts at manipulation by describing two market occurrences regularly observed by Maybridge’s traders:

• Occurrence 1: Multiple sell offers appear, only to disappear after briefly weakening prices recover.
• Occurrence 2: When Maybridge’s traders place bids just above the current bid price, that bid is instantly raised to a price just above the bid placed by the traders.

Should Olsen most likely consider both market occurrences observed by his traders to be examples of market manipulation?

选项：

A.

Yes

B.

No, Occurrence 1 is not an example of market manipulation.

C.

No, Occurrence 2 is not an example of market manipulation.

解释：

C is correct. Dealers will leapfrog quotes when they are willing to trade at better prices than those quoted. If a spread is sufficiently wide, a game of leapfrog may ensue, where buy- side traders are forced to quote a better price in order to maintain order precedence.

A is incorrect, because only Occurrence 1 is an example of market manipulation.

B is incorrect. Occurrence 1 describes spoofing. Spoofing is a manipulative trading practice in which traders place exposed standing limit orders to convey an impression that a security is under- or overvalued. If the spoofer wants to buy stock cheaply, a hidden buy order might be placed in the market. The spoofer then places one or more exposed sell limit orders in the market to convey the impression prices may soon fall. After seeing the spoofing sell orders, traders may conclude that true values may be lower than market prices suggest and sell into the spoofer’s buy order, enabling the spoofer to obtain a quick and possibly cheaper purchase than might otherwise be obtained.