"An offer of IPO shares made to an officer of a publicly held company is considered to be spinning if the publicly held company is:"

an investment banking client of the broker-dealer

Explanation: An offer of Initial Public Offering (IPO) shares made to an officer of a publicly held company is considered to be spinning if the publicly held company is an investment banking client of the broker-dealer.

Spinning considered both illegal and unethical defines the act of offering preferred customers shares in an IPO by a brokerage firm or underwriter in order to keep or obtain their business, thus benefiting both parties as it gives the firms and underwriters an opportunity to keep the business favorable and also making huge gains, while the preferred customers profit by investing in hot IPO shares of stock.  If detected, it could lead to heavy fines for these business and/customers.

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