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. Which statement is TRUE? A. The account can buy the issue without restriction
B. The account can buy the issue if the branch manager approves
C. The account can buy the issue if the registered representative agrees not to share in the profit on the position
D. The account is prohibited from buying the new issue

D. The account is prohibited from buying the new issue.

Explanation:

This account which is known to be owned by the registered representatives above are been put on probation or generally prohibited from purchasing new issues from its underwriters. Also it is known that for any account in whose name is been registered, its representatives or restricted persons have a greater than 10% participation as well. Therefore, there will be a prohibition in IPO purchase on such accounts. There are also other values that comes with IPO which includes the fact that it gives public awareness by making products been known by potential customers.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.