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13 August, 23:02

A member firm allocates shares of an IPO to the CEO of a different company that is considering the possibility of using the member firm for its IPO. This action is:A. Flipping, a prohibited activityB. Spinning, a permitted activityC. Flipping, a permitted activityD. Spinning, a prohibited activit

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  1. 13 August, 23:38
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    D. Spinning, a prohibited activity

    Explanation:

    Spinning is a prohibited activity.

    In this a member firm allocates shares of a new issue to certain decision makers.

    These decision makers may be the executive officers, directors, (former or current) or prospective customers and also, it can be person who is materially supported by the executives or directors.
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