Which of the following is the practice that involves short-term trading of mutual funds seeking to take advantage of short-term discrepancies between the price of a mutual fund's shares and out-of-date values on the securities in the fund's portfolio?

Question

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Market timing involves short-term trading of mutual funds in order to take advantage of temporary discrepancies in prices. This practice can be disruptive to long-term investors and can have a negative impact on the overall performance of the fund. Insider trading involves the illegal use of non-public information to make trades, late trading involves placing trades after the market has closed but at the previous day's price, directed brokerage involves a mutual fund company directing trades to a specific brokerage firm in exchange for other services, and spinning involves underwriters giving IPO shares to executives of companies in exchange for their lucrative investment banking business.

Which of the Following Is the Practice That Involves Short-Term