A registered representative is a 15% participant in an investment club formed by members of the local Elks Club. The Elks Club investment club has opened a securities account at ABC Brokerage. The account wishes to buy an IPO being offered by an underwriter. The account is prohibited from buying the new issue. Registered representatives are prohibited from buying new issues from underwriters. This is true for any account in which registered representatives or restricted persons have a greater than 10% participation as well. Thus, this account would be prohibited from buying the IPO.

The correct answer is The account is prohibited from buying the new issue.

Explanation:

Initial public offering (IPO) or start-up of the stock market is a type of public offering in which the shares of a company are sold to institutional investors and usually also small (individual) investors; An initial public offering is signed by one or more investment banks, which will also arrange the shares listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a private company is transformed into a public company. Initial public offers can be used: to raise new share capital of the company in question; to obtain economic benefits from the investments of private shareholders, such as founders or private equity investors; and to facilitate trade in existing or future holdings capital increase by becoming publicly traded companies.

answer; correct answer is investing activity;