3507. New issues

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    1. For the purpose of section 3507, the term "normal investment practice" does not include an account that has regularly purchased "hot issues" based on the history of investments in that account with the Dealer Member

    2. A Dealer Member must make a bona fide offering of the total amount of its participation in a new issue to public investors. 

    3. Public investors do not include an officer or employee of a bank, insurance company, trust company, investment fund, pension fund or similar institutional body or the immediate families of an officer or employee of these institutions regularly engaged in the purchase or sale of securities for such institution unless:

      1. the purchases are demonstrated to be for bona fide personal investment, and

      2. are made in accordance with the person’s normal investment practice.

    There is no history log for this rule.

    There is no history log for this rule.