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

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Carol

17 days ago

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

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Gilma

5 days ago

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

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Shakira

6 days ago

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

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Bettina

27 days ago

Option D seems like the correct answer. Underwriters and selling group members can't do any of those things during a new issue distribution.

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Judy

10 days ago

I agree, option D is the correct answer. They are prohibited from all of those actions.

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Mozell

1 months ago

I'm not sure, but selling to another broker who needs to fill an accommodation order seems like a violation.

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Osvaldo

1 months ago

I agree with Horace, it makes sense to not withhold blocks of a new issue in the member's account.

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Horace

1 months ago

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

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