Which practice involves buying and selling securities shortly before the close to influence closing prices?

Which practice involves buying and selling securities shortly before the close to influence closing prices?

• A. Marking the close
• B. Ramping
• C. Capping/pegging
• D. Parking

Answer: (A)

This is about manipulating the final price by trading near the close. Marking the close involves placing or executing trades just before the market shuts to push the last traded price in a chosen direction. The closing price often serves as the official price for settlement, index calculations, and fund valuations, so turning the close into a manipulated signal can mislead investors and distort perceived demand. This fits the description precisely, because it centers on influence over the closing price through activity at the end of the trading session. The other terms describe different tactics: ramping is about pushing prices higher through sustained activity (not necessarily just at the close), capping/pegging aims to hold prices at a certain level or limit movement (not specifically about closing prices), and parking refers to placing orders to inflate apparent liquidity or delay execution (again, not about altering the close itself).

This is about manipulating the final price by trading near the close. Marking the close involves placing or executing trades just before the market shuts to push the last traded price in a chosen direction. The closing price often serves as the official price for settlement, index calculations, and fund valuations, so turning the close into a manipulated signal can mislead investors and distort perceived demand.

This fits the description precisely, because it centers on influence over the closing price through activity at the end of the trading session. The other terms describe different tactics: ramping is about pushing prices higher through sustained activity (not necessarily just at the close), capping/pegging aims to hold prices at a certain level or limit movement (not specifically about closing prices), and parking refers to placing orders to inflate apparent liquidity or delay execution (again, not about altering the close itself).