Restricted Periods: Understanding Priority of Transactions

Restricted Periods

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Question

"Restricted Periods" are discussed in Standard IV (B.4), Priority of Transactions. Another name for restricted periods is ________ periods.

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Explanations

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Explanation

Firm procedures should prevent managers or employees from initiating trades in a security for which their firms have a pending buy or sell order within a 24-hour period. Firms must determine specific requirements relating to such blackout, or restricted periods.