e Waters, a CFA Level I candidate, has decided to enter into a long position of Farmco stock. Since Farmco is thinly traded, Waters is concerned the order will overwhelm the liquidity of Farmco and the price will surge. Waters engages in a series of block trades in order to accomplish the purchase. According to Standard II(B), Market Manipulation, Waters has engaged in: A) transaction-based manipulation, but not information-based manipulation. B) both transaction-based manipulation and information-based manipulation. C) neither transaction-based manipulation nor information-based manipulation.

C. I don’t see any manipulation here.

C - he’s just trading an illiquid stock, nothing manipulative about that

C is the best answer Although he should engage in a series of small trades (not BLOCK i.e. large trades)