Practice Quiz

FINRA Series 7

Category - Series 7

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Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity securities of an IPO except:
  1. to purchase securities to avoid dilution
  2. when the new issue of securities is purchased pursuant to a stand-by agreement
  3. when the transaction is exempt by an order of the FINRA
  4. when the new issue of securities is purchased pursuant to a best effort basis
Explanation
Answer: D - when the new issue of securities is purchased pursuant to a best effort basis. All the other choices are allowable under the rule “except” this one.
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