Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Thursday, September 30, 2010

SEC Approves FINRA Rule Change on Abuses in IPO Allocation Practices

The SEC granted "accelerated approval" of a proposed rule change filed by NASD on Sept. 15, 2003.  New FINRA Rule 5131 (originally proposed as NASD Rule 2712)  prohibits certain abuses in the allocation and distribution of shares in initial publiofferings (“IPOs”), including prohibitions on quid pro quo allocations, spinning, flipping.  It also regulates IPO pricing and trading practices.

http://lawprofessors.typepad.com/securities/2010/09/sec-approves-finra-rule-change-on-abuses-in-ipo-allocation-practices.html

Other Regulatory Action | Permalink

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