____ occurs when a securities firm allocates share from an IPO to corporate executives who may be considering an IPO or other business that will require the help of an investment bank.

Question

Quizplus · Accepted Answer

Spinning refers to the practice of allocating shares in an IPO to corporate executives in order to influence their decision to choose that particular investment bank for future business, often resulting in a conflict of interest. Flipping and laddering are other types of illegal manipulation practices in the stock market.

____ Occurs When a Securities Firm Allocates Share from an IPO