A broker-dealer is underwriting an initial public offering (IPO) for a company that will be exchange-listed. the broker-dealer continues to deliver prospectuses in the aftermarket for 25 days.
An initial public offering (IPO) is the procedure of releasing fresh shares of stock to the public for the first time in a private firm.
A corporation can raise equity funding from the general public through an IPO.
Prospectuses must continue to be delivered on all purchases made in the aftermarket for a period of 25 days following the effective date of the offering when a firm that is the subject of an IPO is listed.
For a period of 90 days following the effective date, an IPO that won't be listed on an exchange must nevertheless produce its prospectus.
Hence, the broker-dealer continues to deliver prospectuses in the aftermarket for 25 days.
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