Series 79 practice questioneasyResearch Analyst Conflicts
For a non-EGC IPO, which circumstance may permit a participating member's analyst to publish during FINRA's 10-day post-offering research period?
- AResearch analyst publishing a buy rating
- BResearch analyst attending an investment banking pitch meeting for the issuer
- CResearch addressing significant news, if legal or compliance personnel authorize it✓ Correct answer
- DResearch analyst distributing a written recommendation to institutional clients only
Explanation
Why C — Research addressing significant news, if legal or compliance personnel authorize it
Rule 2241 permits research or a public appearance during the 10-day period when it concerns significant news or a significant event and legal or compliance personnel authorize it. Ordinary recommendations, pitch participation, or selective institutional distribution do not fit that exception.
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