Rule 10b-6

Rule 10b-6

An SEC rule forbidding broker-dealers, insurers, and underwriters (except those involved in the syndicate placing an issue) from buying shares in a new issue before it is offered to the general public.

Rule 10b-6

An SEC rule that prohibits brokers, dealers, issuers, or underwriters participating in a securities distribution from purchasing the securities before they have been offered to the public.
References in periodicals archive ?
The SEC has informed the Company that such purchases are a violation of Rule 10b-6 ("Rule 10b-6") under the Securities and Exchange Act of 1934, as amended.