____ occurs when an investment bank 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 is a practice where investment banks allocate shares from an IPO to executives of other companies with the hopes that they will become clients of the investment bank in the future. This is considered unethical and illegal.

____ Occurs When an Investment Bank Allocates Share from an IPO