Series 79 practice questionmediumDue Diligence Defense
During the quiet period after an IPO, which of the following is an underwriter expressly prohibited from doing?
- APublishing a research report on the issuer✓ Correct answer
- BAccepting unsolicited buy orders from investors
- CRecommending the issuer’s stock to institutional clients
- DProviding factual information from the prospectus to investors
Explanation
Why A — Publishing a research report on the issuer
Underwriters cannot publish research on the issuer during the quiet period. The trap is thinking only recommendations are restricted, but research publication is specifically prohibited for a set period post-IPO.
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