解释一下正确答案吧，这个题的难度很高啊，前两题也做错了

问题如下：

Which of the following should Ong most likely advise with regard to the regulator’s request?

选项：

A.Ban the “pumping up” of investment prices. B.Require material information be made public within 24 hours. C.When trading, insist service providers give preference to investors.

解释：

Solution

1. Incorrect, because banning the “pumping up” of investment prices, an information-based manipulation, does not fully ensure protection of investors’ interests. Transaction-based manipulation activities and the trading of material nonpublic information can also harm the interests of investors and the integrity of the capital markets. Standard II(B): Market Manipulation prohibits practices that distort or artificially inflate trading volumes to mislead market participants.

2. Incorrect, because requiring the release of all material information could harm the interests of investors. Not all material information is meant for the public’s knowledge. As such, releasing this type of information, for example, could cause a company to lose its competitive advantage, thus harming investors. Standard II(A): Material Nonpublic Information prohibits acting or causing others to act on material nonpublic information so as to not disadvantage investors who do not have access to the same information.

3. Correct. Ong should insist service providers give preference to investors when trading. By assuring investor interests are given preference or priority, the regulators would be helping to maintain capital market integrity. This would also comply with Standard IV(A): Loyalty, Prudence, and Care. Standard II(A): Material Nonpublic Information, which prohibits acting or causing others to act on material nonpublic information, and Standard II(B): Market Manipulation, which prohibits practices that distort or artificially inflate trading volumes to mislead market participants, would thus be upheld because both serve to put investors’ interests first.

Guidance for Standards I–VII

• recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct