Discuss Finra Series-7 Exam Topic 4 Question 85

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

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.

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46 comments · newest first

Cyril 11 months ago

Wait, are you sure about all of this? Sounds a bit off to me.

Nakisha 11 months ago

Seems like a strict rule, but I get it.

Adrianna 12 months ago

No way, they can't withhold blocks either!

Janna 12 months ago

I thought they could sell to other brokers for accommodation orders?

Dyan 1 year ago

Definitely option D, all of the above is correct.

Velda 1 year ago

I definitely studied the rules around new issues, and I think they all have some restrictions, but I’m not confident about the specifics.

Denae 1 year ago

I feel like all of these options could be correct, but I can't recall if "all of the above" is a common answer in these types of questions.

Elli 1 year ago

I think there was a practice question that mentioned something about withholding blocks in a member's account. That might be relevant here.

Maile 1 year ago

I remember something about underwriters not being able to sell to the public at the public offering price, but I'm not sure if that's the only restriction.

Marguerita 1 year ago

Wait, I'm a bit confused. Are we talking about what underwriters and selling group members can't do, or what they're allowed to do? I need to re-read the question and the answer choices more closely to make sure I understand the restrictions properly. Gotta be careful on these tricky regulatory questions.

Hyman 1 year ago

Okay, I think I've got a good handle on this. The key is that underwriters and selling group members are prohibited from selling to the public at the public offering price. The other options are just distractions. I'm feeling good about selecting the right answer.

Leontine 1 year ago

Hmm, I'm a little unsure about this one. The options seem pretty similar, so I'll need to carefully read through each one and think about the specific restrictions on underwriters and selling group members. Gotta make sure I don't miss any important details.

Inocencia 1 year ago

This seems like a straightforward question about the rules for underwriters and selling group members in a new issue distribution. I'm pretty confident I know the answer, but I'll double-check the key points just to be sure.

Gregoria 1 year ago

Okay, let me see. Iterative design testing allows you to test your process without major risks, right? I think the answer is true.

Mona 1 year ago

This looks straightforward to me. The 802.11 standards are all part of the WiFi family of wireless networking protocols, not mobile ad hoc networks. I'm confident the right answer here is C. WiFi.

Kendra 1 year ago

I think the answer might be "Accept" because it mentions letting the risk happen. That sounds familiar from our discussions.

Anika 1 year ago

I'm a bit confused by the difference between software-virtualized and hardware-virtualized GPUs. I'll need to review the details on those options to make the best choice.

Edelmira 1 year ago

Okay, let me see... I think the peripheral variables are probably related to custom variables or script parameters that are passed from the application configuration. The call variables and ECC variables don't seem as relevant here.

Kayleigh 1 year 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.

Chantell 1 year ago

↳ replying to Kayleigh

D) all of the above

Chara 1 year ago

↳ replying to Kayleigh

C) withholding blocks of a new issue in the member's account

Remedios 1 year ago

↳ replying to Kayleigh

B) selling to another broker or dealer who needs to fill an accommodation order

Yuki 1 year ago

↳ replying to Kayleigh

A) selling to the public at the so-called public offering price

Brande 1 year 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.

Annelle 1 year ago

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

Raina 1 year ago

↳ replying to Annelle

C) withholding blocks of a new issue in the member's account

Leslie 1 year ago

↳ replying to Annelle

B) selling to another broker or dealer who needs to fill an accommodation order

Abel 1 year ago

↳ replying to Annelle

C) withholding blocks of a new issue in the member's account

Kimberely 1 year ago

↳ replying to Annelle

A) selling to the public at the so-called public offering price

Karan 1 year ago

↳ replying to Annelle

B) selling to another broker or dealer who needs to fill an accommodation order

Emmett 1 year ago

↳ replying to Annelle

A) selling to the public at the so-called public offering price

Carol 2 years ago

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

Larue 1 year ago

↳ replying to Carol

Definitely. It's important to follow the regulations when it comes to new issue distributions.

Micah 1 year ago

↳ replying to Carol

So, it's safe to say that option C is the best choice here.

Gilma 2 years ago

↳ replying to Carol

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

Shakira 2 years ago

↳ replying to Carol

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

Bettina 2 years 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.

Bettina 1 year ago

↳ replying to Bettina

That's why regulations are in place to prevent any unfair practices.

Rosalind 1 year ago

↳ replying to Bettina

Selling at the public offering price or withholding blocks can manipulate the market.

Timothy 1 year ago

↳ replying to Bettina

It's important for them to follow the rules to ensure a fair distribution process.

Theodora 1 year ago

↳ replying to Bettina

That's right, they have strict rules to follow during a new issue distribution.

Paul 1 year ago

↳ replying to Bettina

I agree, option D is the correct answer. Underwriters and selling group members have restrictions during a new issue distribution.

Judy 2 years ago

↳ replying to Bettina

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

Mozell 2 years ago

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

Osvaldo 2 years ago

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

Horace 2 years ago

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

Finra Series-7 Exam - Topic 4 Question 85 Discussion