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The Financial Industry Regulatory Authority (FINRA) Free Riding & Withholding
Interpretation prohibits "restricted persons" (certain persons associated with the
financial services industry) from participating in the purchase of new hot issue
offerings (i.e., offerings in which the value of the securities rises 5% or more in
the aftermarket).
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Customers must provide responses to a series of questions to determine if they
are "restricted persons" under the interpretation. |