Finra Series-7 Exam - Topic 1 Question 127 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 127
Topic #: 1

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

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