Series 24: Selling To Restricted Persons: FINRA Rule 5130

Taken from our Series 24 Online Guide

Selling to Restricted Persons: FINRA Rule 5130

FINRA Rule 5130 was put in place to make sure that an initial public offering is offered fairly to all public investors, and does not give an advantage to insiders or people in the financial industry. FINRA Rule 5130 prohibits a member firm (broker-dealer) from selling shares of an IPO to an account in which a “restricted person” has a beneficial interest, subject to certain limited exceptions.

Restricted persons are:

• FINRA members and other broker-dealers
• Broker-dealer personnel including registered representatives including their family members
• Lawyers, accountants, financial consultants, or anyone else acting in a fiduciary capacity to the lead underwriter
• Portfolio managers
• Individuals with a significant ownership interest (+10%) in the broker-dealer

A restricted person is one who has beneficial interests (ownership) in at least 10% of the account.

Additionally, the rule also extends to immediate family members of restricted persons suc

+ Read More

More Series 24 Info

What are people saying?

Create an Account

Since you're reading about Series 24: Selling To Restricted Persons: FINRA Rule 5130, you might also be interested in:

Series 66 - 1.1.1.2. Operating Profit (EBIT)

Series 66 - 7.10.4.2 Partners, Directors, and Managers of Broker-Dealers

Series 24 - Liability Arising in Connection with False Registration Statements

Series 28 - Restrictions and Heightened Supervision During the Appeals Process

Series 65 - Partners, Directors, and Managers of Broker-Dealers

Series 6 - 2.2.2. Institutional Accounts

Series 50 - Moral Obligation Bonds

Series 53 - Recordkeeping Requirements

Series 54 - 3.2.4.1. Approval by Principal

Series 66 - Alpha

Series 6 - 6.3. Life Insurance

Series 65 - 7.1.5.1.1 Market Orders

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

Just wanted to say thank you and give you a good review. I actually found that your test questions were harder than the actual exam and the explanations and the ability to create tests of all of my wrong answers helped me focus on my weak areas of the exam. I passed the first time and don't believe I couldn't have done it without your test bank. Thanks again.

Chris Porosky, FL

Passed the 24 today ... fun test.. You have a great product. The material was easy to follow and the practice tests were very, very helpful. Thank you.

Danny Klingler, Kestra Financial, Austin, Texas

I originally started studying for the series 24 with Test Teachers... After being frustrated with confusing material, out of date information, contradicting questions/answer/study guides, I bought Solomon's practice exams... After one test, two things became clear: I was grossly unprepared for the exam The material, though difficult, didn't have to be taught in such a confusing manner.I passed the 24 on the fist time because of the quality of the practice exams from Solomon. Thank you! Putting it another way...If you are using anyone else to study, you owe it to yourself and your efforts to buy the practice exams from Solomon to get a true judge of your studying efforts.

Will, Bainbridge Island, WA

I took another vendors 24 course but it did not compare to how Solomon Exam Prep for Series 24 prepared me. The material and practice exams, especially the timed exams, were broken up by sections, similar to the FINRA Exam. This really helped in allowing me to understand which section(s) I needed to spend more time on/hit harder. Thank you Solomon!!!

Jim Ruckman, Mass Mutual

Finally! Having used the study material provided by my firm, I couldn't get over the passing level. Came out of pocket for Solomon, and passed [the Series 24] on the first effort - Thank you!

Scott Krogmann, Regions Bank, Knoxville, TN

Between September 18 and December 3, I took exams for the Series 62, 63, 6 and 24. I studied for everything with Solomon, and passed them all on the first try. Solomon’s interactive/Ask the Professor teaching method was extremely helpful in grasping the necessary concepts. What a relief to be done. Thanks, Karen!

Karen H, Dalkeith Group, High Falls, NY