A form that foreign dealers are required to file with FINRA when they are involved with new issues in which demand exceeds supply. Form FR-1 ensures that the foreign dealers do not attempt to sell shares of the new issue above the offering price or to certain prohibited organizations with which there may be a conflict of interest. Foreign dealers only fill out Form FR-1 with they buy new issues for resale. Less formally, it is called a blanket certification form.
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A National Association of Securities Dealers form that requires foreign securities dealers who are purchasing new issues for resale to comply with NASD rules for hot issues. The form helps to ensure that foreign broker-dealers will not sell a stock intended for public offering above the offering price or to individuals associated with those broker-dealers. Also called blanket certification form.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.