Which of the following activities is considered a prohibited practice according to IIROC Rule 2800?

Which of the following activities is considered a prohibited practice according to IIROC Rule 2800?

• A. Spreading accurate information about a stock
• B. Conspiring to manipulate markets
• C. Trading ethically to enhance market stability
• D. Conducting transactions that enhance client transparency

Answer: (B)

The activity of conspiring to manipulate markets is considered a prohibited practice according to IIROC Rule 2800 because it undermines the integrity of the financial markets. Market manipulation can involve various deceitful practices designed to create a false impression of the price or demand for a security. Such actions not only violate regulatory standards but can also lead to significant harm to other investors and erode public trust in the financial system.

In contrast, spreading accurate information about a stock, trading ethically to enhance market stability, and conducting transactions that enhance client transparency are all practices that contribute positively to the market environment. These activities align with principles of integrity, transparency, and fairness expected from participants in the financial markets, and are therefore not classified as prohibited practices under IIROC rules.