Mary bought 1,000 shares in the morning and sold 1,000 shares of the same security in the afternoon. Under the Investment Advisers Act of 1940 rules on unethical business practices of investment advisers, which of the following statements is TRUE?
A) She has violated the act.
B) She has violated the act if a profit was made.
C) Her broker has violated the act.
D) She has violated the act only if she was trying to create market activity for the security to give a misleading appearance.
Answer: D) She has violated the act only if she was trying to create market activity for the security to give a misleading appearance.