Series 79: New Issue Rule

Taken from our FINRA Investment Banking Exam

Definition of the term New Issue Rule...

FINRA Rule 5130, which aims to protect the distribution of IPO securities from manipulation by securities industry insiders. It defines certain insiders as restricted persons who cannot purchase or otherwise receive securities from IPOs, with certain exceptions. It also requires the lead underwriter to file with FINRA information about the distribution participants.

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