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

About this episode

This episode covers IPO rules, new issue allocations, and relevant FINRA regulations for exam preparation.

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

People in this episode

Host: Ran Chen

Topics covered

• IPO Rules
• New Issue Allocations
• FINRA Regulations
• Conflict of Interest
• Public Offerings
• Exam Preparation

Keywords

• IPO
• FINRA Rule 5130
• restricted persons
• free-riding
• bona fide public offering
• conflict of interest
• Qualified Independent Underwriter
• fair allocation
• spinning IPO shares

Mentioned in this episode

Organizations: FINRA, Qualified Independent Underwriter, Open Exam Prep

Products: Series 6, Series 63, Series 65, CFP®

More episodes of Open Exam Prep

• Series 7 Exam Prep 6, Exempt Securities and Exempt Transactions · June 13, 2026 · 4 min
• Series 7 Exam Prep 4, New Issues, Underwriting, and Prospectus Delivery · June 11, 2026 · 4 min
• Series 7 Exam Prep 3, Broker-Dealer Business and Customer Solicitation · June 10, 2026 · 3 min
• Series 7 Exam Prep 2, What a General Securities Representative Can Do · June 9, 2026 · 3 min
• Series 7 Exam Prep 1, Exam Structure and Function Weighting · June 8, 2026 · 3 min
• [Series 65] 75, Anti-Money Laundering and Senior Protection · June 7, 2026 · 4 min