Open Exam Prep

Series 7 Exam Prep 5, IPO Rules and New Issue Allocations

June 12, 2026·3 min
Episode Description from the Publisher

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The definition of 'restricted persons' under FINRA Rule 5130 and who is prohibited from buying common stock IPOs. - How the violation of 'free-riding and withholding' applies to 'hot issues' and the requirement for a bona fide public offering. - The rules around prospecting and accepting indications of interest during a new issue's cooling-off period. - How to identify a conflict of interest under FINRA Rule 5121 and the role of a Qualified Independent Underwriter (QIU). - The principles of fair allocation and the prohibition of 'spinning' IPO shares as a quid pro quo for other business. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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