Finra Exam Series-7 Topic 4 Question 85 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 85
Topic #: 4

[All Series-7 Questions]

In the distribution of a new issue underwriters or selling group member are prohibited from:

Aselling to the public at the so-called public offering price

Bselling to another broker or dealer who needs to fill an accommodation order

Cwithholding blocks of a new issue in the member's account

Dall of the above

Show Suggested Answer

Suggested Answer: C

it is unchanged. The debentures add to liabilities and to cash (an asset) received from the sale. There is no effect on net worth.

by Lazaro at Apr 19, 2024, 08:00 PM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kayleigh

9 days ago

Option B is the one that jumps out at me. Selling to another broker or dealer who needs to fill an order? That seems like a big no-no.

upvoted 0 times

...

Brande

14 days ago

All of the above? Wow, underwriters really have their hands tied during a new issue distribution. No wonder it's such a regulated process.

upvoted 0 times

...

Annelle

17 days ago

Haha, witholding blocks of a new issue? That sounds like a recipe for a 'new issue' of lawsuits!

upvoted 0 times

...

Carol

1 months ago

I'm pretty sure option C is the right answer. Withholding blocks of a new issue is definitely prohibited.

upvoted 0 times

Gilma

23 days ago

Yeah, that's a clear violation of the rules. Underwriters can't do that.

upvoted 0 times

...

Shakira

24 days ago

I think option C is correct too. It's definitely not allowed to withhold blocks of a new issue.

upvoted 0 times

...

2 months ago

I think the answer is D) all of the above.

upvoted 0 times

...