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Series 7 Exam Prep 5, IPO Rules and New Issue Allocations
Published 1 month, 2 weeks ago
Description
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
In this episode you will learn:
- The definition of 'restricted persons' under FINRA Rule 5130 and who is prohibited from buying common stock IPOs.
- How the violation of 'free-riding and withholding' applies to 'hot issues' and the requirement for a bona fide public offering.
- The rules around prospecting and accepting indications of interest during a new issue's cooling-off period.
- How to identify a conflict of interest under FINRA Rule 5121 and the role of a Qualified Independent Underwriter (QIU).
- The principles of fair allocation and the prohibition of 'spinning' IPO shares as a quid pro quo for other business.
For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep