Initial Public Offerings and New Issues
Trust and transparency are the cornerstones of the financial industry. This includes broker dealers. As part of this framework, the Financial Industry Regulatory Authority (“FINRA”) created Rules 5130 and 5131 to govern broker dealers regarding the issuance of new securities. FINRA Rule 5130 places restrictions on the purchase and sale of initial public offerings (“IPOs”). The primary goal of this rule is to prevent unfair allocation of new issues to industry insiders. Industry insiders include broker dealers, their associated persons, and immediate family members. If this restriction was not in place, the investing public may not have the opportunities that Read more about Initial Public Offerings and New Issues[…]