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Series 79: Underwriting & New Financing
Series 79 practice questionmediumQuiet Period

After an IPO, what is the research quiet period during which syndicate member analysts are restricted from publishing research on the newly public company?

  1. AThere is no post-IPO research quiet period under current rules
  2. B10 calendar days for managing underwriters and 25 calendar days for syndicate members
  3. C25 calendar days for all syndicate members as previously required, though FINRA eliminated the mandatory quiet period in 2015, though firms may maintain internal policies✓ Correct answer
  4. D90 days for all participants
Explanation

Why C25 calendar days for all syndicate members as previously required, though FINRA eliminated the mandatory quiet period in 2015, though firms may maintain internal policies

FINRA historically required a 40-day (later reduced to 25-day for managers and 10-day for other syndicate members) research quiet period after an IPO, during which syndicate analyst coverage was restricted. However, in 2015, FINRA eliminated the mandatory post-IPO research quiet period through amendments to its rules, citing the Global Research Settlement and other regulatory changes that had addressed the conflicts of interest the rule was designed to prevent. Many firms nonetheless maintain internal quiet period policies as a best practice to manage potential conflicts.

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