33. Describe the ethical violation below.

Small Companys stock is thinly-traded (i.e., not like IBM or Microsoft; not a huge amount of shares in the marketplace, so less liquidity). Clients portfolio owns a small amount of this stock. PM is paid a performance-based fee every quarter; if he beats the portfolios performance benchmark, he makes more money. In the last trading day, PM buys shares of Small Companys stock all through the day. Due to the unusual trading volume caused by PMs large and repeated order, Small Companys shares soar and close at a higher price than it has reached in a long time. Clients portfolio ends quarter on high note and beats its benchmark. On the following trading day, the market comes to its senses about Small Company and the price plummets.