Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

Finra Series-7 Exam - Topic 1 Question 127 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 127
Topic #: 1

[All Series-7 Questions]

Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity securities of an IPO except:

Ato purchase securities to avoid dilution

Bwhen the new issue of securities is purchased pursuant to a stand-by agreement

Cwhen the transaction is exempt by an order of the FINRA

Dwhen the new issue of securities is purchased pursuant to a best effort basis

Show Suggested Answer

Suggested 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.

by Johnna at May 31, 2026, 08:31 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Yuonne

2 hours ago

I recall that Rule 2790 has a lot of nuances. I think the answer could be C, but I need to double-check what qualifies as an exemption.

upvoted 0 times

...

Latanya

5 days ago

I’m a bit confused about the stand-by agreement. Is that considered an exception for restricted persons?

upvoted 0 times

...

Nydia

10 days ago

This question reminds me of a practice question we did on IPO restrictions. I feel like option D might be the right answer, but I could be wrong.

upvoted 0 times

...

Ngoc

16 days ago

I think I remember that restricted persons have specific limitations, but I'm not entirely sure about the exceptions.

upvoted 0 times

...