SIE Exam Practice Question 252

Question: 252

Regulation SHO severely restricts short selling during the cooling offer period of a follow-on offering. Which of the below is true?

A. shorting stock of a company undergoing a follow on offering is prohibited during the registration period.

B. an investor cannot buy the new shares in a follow on deal if they have sold the outstanding shares of that issuer during the cooling off period.

C. an investor may buy the new issue shares on the offering so long as any short sale has been covered at least one business day prior to the effective date.

D. none of the above

SIE Exam Practice Question 252

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