"Rule 105 of Regulation M, covering transactions that occur in the secondary market during the 20-day cooling off period for "add on" securities offerings, requires that any short sales of the issue that occur:"

B. I and IV

Explanation:

Here is the completed part of the question:

I that occur 5 business days prior to the effective date

II that occur 20 business days prior to the effective date

III can only be effected on an upbid

IV cannot be covered by purchasing the issue from the syndicate

A. I and III

B. I and IV

C. II and III

D. II and IV

The Rule 105 of the Security Exchange Commission Regulation M covers the activities in the secondary market that are related to the public offerings they have been registered and also limits syndicate members purchasing securities during the 20 days cooling off period.

Therefore, Rule 105 of Regulation M, covering transactions that occur in the secondary market during the 20-day cooling off period for "add on" securities offerings, requires that any short sales of the issue that occur 5 business days prior to the effective date and cannot be covered by purchasing the issue from the syndicate

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