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Under What Conditions May an FINRA Member Firm Sell an IPO

Question 24

Multiple Choice

Under what conditions may an FINRA member firm sell an IPO to an employee of another broker/dealer?


A) if the amount of the purchase is small and the transaction accords with the employee's normal investment practice
B) if the member firm notifies the other broker/dealer of the transaction
C) if the employing broker/dealer guarantees that resale of the securities acquired by its employee will be restricted for two years
D) under no circumstances

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