Series 10 Practice Exam 2025 – Complete Guide for Securities Sales Supervisor Prep

Question: 1 / 400

When can a corporation execute a purchase order for its own stock?

At prices higher than market

During regular trading hours only

At prices not exceeding the last reported sale price

A corporation can execute a purchase order for its own stock at prices not exceeding the last reported sale price to maintain fair market conditions and prevent market manipulation. This practice is in line with regulations that aim to protect investors and ensure that companies do not artificially influence the price of their own stock. By limiting repurchases to the last reported sale price, a corporation helps to foster transparency and fairness in trading.

Moreover, repurchases at excessive prices or without restrictions could lead to an unfair advantage or manipulation of the stock's market price, which is why this limitation exists. Therefore, the approach encapsulated in this correct option aligns with regulatory standards and the principles of fair trading in the securities market.

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