Normal Investment Practice

Normal Investment Practice - Normal Investment Practice is the history of investment in a customer account with a member of the National Association of Securities Dealers as defined in their rules and regulations of fair practice. It is a method to experiment the bona fide public offerings requirement applying to the allocation of a hot issue. If the buying patron has a history of purchasing similar amounts in normal circumstances, the sale qualifies as a bona fide public offering and is not in violation of the Rules of Fair Practice. A quota of buying only hot issues is not acceptable as normal investment practice.