Which of the following is NOT a behavior typically associated with money laundering in securities transactions?

The behavior described in the correct choice, which pertains to using proceeds from sales for legitimate purchases, is not typically associated with money laundering in securities transactions. Money laundering is a process used to conceal the origins of illegally obtained money, typically by means involving complex layering or structuring of transactions to make them appear legitimate.

Using proceeds from sales for legitimate expenditures indicates a straightforward transaction where the origins of the funds are accepted as lawful. This contrasts with behaviors often linked to money laundering, which involve intricate and suspicious activities aimed at obscuring the source of the funds.

Frequent small deposits, layering transactions between various securities, and rapid buying and selling of stocks all represent tactics that might be employed to mask illicit gains. Frequent small deposits can help avoid triggering reporting thresholds. Layering refers to the movement of money through various transactions to further distance it from its illicit source. Rapid buying and selling creates a high-volume trading environment that can obscure the true nature of the transactions, making it difficult for regulatory bodies to trace the suspicious activities. Hence, these behaviors exemplify efforts to launder money, while using proceeds for legitimate purchases does not align with the typical objective of money laundering.