Series 79 practice questioneasyIPO Process
Which activity typically occurs immediately after the pricing of an IPO but before trading begins?
- AFiling of the S-1 registration statement
- BSEC effectiveness is declared
- CAllocation of shares to investors✓ Correct answer
- DUnderwriters sign the engagement letter
Explanation
Why C — Allocation of shares to investors
Pricing is followed by share allocation to investors, setting the stage for trading on the public market. The registration is already filed, and engagement letters are signed much earlier.
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