Securities Act 1933
During the cooling-off period for a new issue, a broker-dealer may do all of the following EXCEPT:
During the cooling-off period (while SEC reviews the registration statement), broker-dealers may distribute the red herring prospectus, collect non-binding indications of interest, and hold due diligence meetings. Howeve
Complete Analysis & Legal Rationale
During the cooling-off period (while SEC reviews the registration statement), broker-dealers may distribute the red herring prospectus, collect non-binding indications of interest, and hold due diligence meetings. However, they cannot accept money or make binding sales until the registration becomes effective.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.