Series 79 practice questionmediumStabilization and Aftermarket
What is the purpose of aftermarket research blackout rules around an offering?
- ATo reduce conflicts and prevent research from improperly influencing the distribution process✓ Correct answer
- BTo stop all secondary market trading
- CTo eliminate the prospectus delivery requirement
- DTo prevent investors from submitting limit orders
Explanation
Why A — To reduce conflicts and prevent research from improperly influencing the distribution process
To reduce conflicts and prevent research from improperly influencing the distribution process Research restrictions are designed to separate investment banking incentives from research publication during sensitive offering periods. They are part of the broader conflict-management framework in capital markets activity.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Underwriting & New Financing questions